Central Banks Kept Buying Gold in November
According to Krishan Gopaul, a senior analyst at the World Gold Council, central banks around the world continued to add gold to their reserves in November. Public records and reports from the International Monetary Fund (IMF) show that these banks purchased a total of 44 tonnes of gold during the month. The Central Bank of Turkey led the way with the purchase of 25 tonnes, followed by the National Bank of Poland with 19 tonnes.
Gold Remains Attractive to Central Banks
Gopaul emphasized that the increase in gold purchases by central banks reflects the growing interest in gold as a reserve asset, particularly among emerging markets in Asia and Europe. Developed nations, on the other hand, have not been actively involved in buying or selling gold.
China Leads in Gold Purchases
China's central bank, the People's Bank of China, ranked third in terms of gold purchases in November, acquiring 12 tonnes. However, China has been the leading buyer of gold in recent years, having added more than 200 tonnes to its reserves in 2023.
Uncertainty Surrounding Fiat Currencies
Economist Steve Hanke, a professor at Johns Hopkins University, attributes the accumulation of gold by central banks in developing nations and countries like China to the uncertainty surrounding fiat currencies. Hanke believes that the increasing use of the U.S. dollar as a weapon and the imposition of sanctions have prompted countries to move towards "de-dollarization mode," leading them to invest in gold.
Flat Performance Predicted
Despite the ongoing gold rush, the World Gold Council predicts that gold prices will remain relatively stable in a soft landing scenario. This suggests that the demand for gold may not increase significantly in the near future.
What are your thoughts on the continued gold purchases by emerging nations? Share your opinions in the comments section below.
CFTC
irs.gov
finance.yahoo.com
How To
Three ways to invest in gold for retirement
It's essential to understand how gold fits into your retirement plan. There are several options to invest in precious metals if your employer has a 401k. You may also be interested in investing in gold beyond your workplace. You could, for example, open a custodial bank account at Fidelity Investments if your IRA (Individual Retirement Account) is open. If you don't have any precious metals yet, you might want to buy them from a reputable dealer.
These are three simple rules to help you make an investment in gold.
- Buy Gold with Cash – Avoid using credit cards or borrowing money to fund investments. Instead, put cash into your accounts. This will help to keep your purchasing power high and protect you against inflation.
- Physical Gold Coins to Own – Physical gold coin ownership is better than having a paper certificate. It's easier to sell physical gold coins rather than certificates. You don't have to store physical gold coins.
- Diversify your Portfolio. By investing in multiple assets, you can spread your wealth. This can reduce market volatility and help you be more flexible.
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