After the World Gold Council’s (WGC) Q3 report showed that central banks bought a record amount of gold, data released by the WGC shows that central banks are buying more gold in the fourth quarter of this year. 2022. Statistics show that the amount of gold held by central banks around the world is at the highest level since 1974.
Central Banks Continue to Buy Gold in Q4, United Arab Emirates Buys Largest Amount of Gold Bars in October
Central banks around the globe are buying gold in bulk and in the first week of November, the World Gold Council (WGC) report showed that central banks bought a record amount of bullion. WGC Q3 2022 data indicates that central banks hoarded nearly 400 tonnes in Q3, which was the highest quarter on record for gold purchases.
WGC also noticed that there was a mysterious gold buyer in Q3 and China is suspect is a secret buyer of gold. New stats from the WGC, published after its Q3 2022 report, showed that in October, central banks around the world collected 31 tonnes of gold. The central bank of the United Arab Emirates (UAE) bought the most gold in October, adding 9 tons of gold to the country’s reserves.
WGC data indicates that the UAE purchased 18 tonnes of gold throughout 2022. Currently, the total amount of gold purchased by central banks worldwide is at a 47-year high, or since. 1974. Figures show that Uzbekistan bought an additional 9 tons of gold for its reserves after buying the precious metal for seven consecutive months. Uzbekistan has bought 37 tons of gold this year, and gold accounts for 60% of the country’s total reserves.
The data also shows that the National Bank of Cambodia bought two tons of gold in September and Kazakhstan bought three tons of the yellow precious metal in October. Central banks buy precious metal gold to diversify its projections. their foreign exchange reserves. In essence, people believe that precious metals can reduce the overall risk to their reserves as gold has been considered a safe-haven asset for thousands of years.
Central banks around the world typically obtain gold from large commercial banks or directly from gold mining companies. Gold has performed well over the past two weeks and on Wednesday an ounce is currently trading for $1,778 a unit. Since November 3, 2022, gold has gained 9.15% against the US dollar, from $1,629 an ounce to its current value of $1,778 an ounce on Wednesday, December 7, 2022.
What do you think about central banks buying record amounts of gold in 2022? What do you think of the latest central bank gold buying in October? Let us know your thoughts on this topic in the comments section below.
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