| | |
|
World Gold Council
“Gold demand fell 1% in 2019 as a huge rise in investment flows into ETFs and similar products was matched by the price-driven slump in consumer demand. . . Central bank demand also slowed in the second half – down 38% in contrast with H1’s 65% increase. But this was partly due to the sheer scale of buying in the preceding few quarters and annual purchases nevertheless reached a remarkable 650.3t – the second highest level for 50 years.”
Image courtesy of the World Gold Council
USAGOLD note: We are quite a distance from the days when central banks were net sellers of gold. Some central banks are building reserves. Others are making certain that gold is repatriated within their borders. Few are selling and when they do it is usually under stressed circumstances. De Nederlandsche Bank, the Dutch central bank, recently offered a bedrock reason for the official sector’s interest in building and maintaining gold reserves. “[I]f the system collapses,” it said, “the gold stock can serve as a basis to build it up again. Gold bolsters confidence in the stability of the central bank’s balance sheet and creates a sense of security.’”
Repost from 1-30-2020
| |
Read the rest of the article at
USA Gold
