Gold News

Central Banks Buy Gold in Record Volumes

 

CENTRAL BANKS that opted to Buy Gold between April and June contributed a record quarter for official sector gold buying, according to the World' Gold Council's latest Gold Demand Trends, the global authority on worldwide supply and demand for gold.

Official sector net gold purchases in the second quarter were 157.5 tonnes – a 138% increase over the same period last year.

"This was a record quarter for central bank buying since the sector began recording net purchases in Q2 2009," the WGC report says.

One institution choosing to Buy Gold in Q2 was the National Bank of Kazakhstan. Kazakhstan bought gold in each of the three months, adding 5.4 tonnes in total.

Russia meantime added 22.3 tonnes to its official Gold Bullion reserves during the three months to the end of June.

"Over recent years," the WGC reports says, "the Central Bank of Russia  has added substantially to its gold reserves in order to diversify its foreign exchange reserves, fuelled by years of oil assisted economic growth and high oil prices. The central bank views gold as having a monetary role as collateral."

"It is clear that gold's fundamental properties as a vehicle for capital preservation and a source of liquidity continue to endure," says Marcus Grubb, managing director, investment at the World Gold Council.

"This is evident from the activity of central banks, the ultimate long term investors, which continue to increase their gold holdings to diversify reserves and protect against reliance on one or more foreign currencies."

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