Central Banks Hoard Gold To Stave Off Currency Problems

Johannesburg-SA (Feb 4)  Central banks around the world are hoarding gold with reserves rising to the second highest level for 50 years.

The banks were net buyers for the tenth year in a row with purchases across 2019 adding up to a record 650 tonnes, says mining and manufacturing trade body the World Gold Council.

“Central bank net purchases in 2019 were remarkable.

“The annual total of 650.3t is the second highest level of annual purchases for 50 years, highlighting the importance central banks place on having an allocation to gold in their reserve portfolio. The highest level was recorded in 2018 and buying in 2019 was not widely expected to repeat these levels for a second consecutive year,” said a gold council spokesman.

“In total, 15 central banks increased their gold reserves by at least one tonne in 2019, highlighting the breadth of buying. Demand was exclusive to emerging market central banks looking to bolster and/or diversify their overall reserves.”

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