The World Gold Council has defined gold as a valuable strategic asset in 2020. As of July, the central bank headed by China, Russia and Poland purchased 374 tons of gold, up 73% year-on-year, while the global central bank bought gold in 2018. It was the total purchase amount of about 651 tons (about 40% of which was purchased by Russia) in the year when the US dollar was linked to gold in 1971, and the current purchase boom is still going on. The latest development is that Uzbekistan, Serbia and the Philippines also joined. To increase the ranks of gold.
According to the latest news released by the Russian Central Bank, the Russian gold reserve has broken the 2,208-ton mark in August, and the proportion of foreign reserves has risen from 2% two years ago to the current 19%; the Polish central bank has announced that it has been 6 In July, 100 tons of gold were added in one lump sum; according to the latest data of the People’s Bank of China, as of the end of July, China has achieved an eight-month increase since December 2018, a total increase of about 92 tons to 1926.55 tons.
For the purchase of Chinese buyers, the BWC Chinese Network Financial Watch team believes that this is a news that surprised investors because it has not been updated since October 2016. Since many countries, including Russia and Turkey, are going to dollarization in commodity trading or foreign reserve, and China has long remained silent on its gold reserves, the Chinese central bank has not reported it for more than two years before December 2018. The increase in gold reserves (as shown below), then, if China continues to increase its holdings of gold in the next few months, it is likely to be a round of gold holdings similar to 2015-2016.
The data shows that China’s official gold reserves have remained unchanged for more than six years from 2009 to 2015, and when the data was released in January 2015, the market suddenly found that China’s official gold reserves have increased by more than 50%. After that, China has entered a state of almost continuous increase of 16 months.
Caption: This piece of gold weighs 220 kilograms and is kept in a gold museum in China. It is known as the world’s largest solid brick.
In this regard, the US financial website Zerohedge said that many countries such as China and Russia seem to be preparing for the future loss of the main international reserve currency status for the US dollar. This is another signal that China has broken the silent acquisition of gold. It is opening up with the Fed. The monetary easing cycle is long-term preparation. Gold is a historical safe-haven investment. When the market and other currencies fluctuate or become weak, their prices usually rise.
After the massive growth of the gold reserves of central banks such as China and Russia, it is intriguing for readers to send out a clear investment signal. Then, ZeroHedge further analyzed that in the 48 years after the United States excluded gold from the world monetary system, many people believe that the role of gold in the global monetary system is over, but things are changing.
What is happening behind this, what readers generally do not pay attention to is that in the era of globalization, gold as a top commodity is flowing around the world, but when the market risk increases, this flow pattern is expected to be reversed in the future. Gold is more likely to flow as a strategic economic resource to a stronger economy.
The reason for triggering the global central bank to accelerate the increase in gold is the 2008 financial crisis, which includes many central banks thinking of the existence of US gold. At the same time, there have been many doubts about the safety of gold in the Federal Reserve Bank’s underground vault. One of them is that the huge amount of gold deposited by investors in the underground treasury of the Federal Reserve Bank of New York has long been hollowed out, followed by Germany, France, Many countries, such as the Netherlands and Venezuela, have asked for a return or even want to check it, but surprisingly, the Fed has rejected all these inspection requirements.
All of this has once again caused the country’s existence of the Fed’s gold puzzles to rise. In fact, according to ZeroHedge’s explanation, since 1950, the gold deposited in the Fed has not been audited in kind, and these are triggering the process of multinational central banks starting to accelerate the accumulation of gold or plan to ship gold back from New York.