Following the World Gold Council’s (WGC) third-quarter report that shows central banks purchased a record amount of gold, data released by the WGC shows that central banks are buying more gold during 2022’s fourth quarter. Statistics show that the gold held by the world’s central banks is at the highest level since 1974.
Central Banks Continue to Acquire Gold in Q4, UAE Purchases the Largest Quantity of Gold Bullion in October
Central banks around the globe are purchasing vast quantities of gold and during the first week of November, a World Gold Council (WGC) report had shown central banks bought a record quantity of bullion. WGC’s Q3 2022 data indicated that the central banks stacked close to 400 tons in Q3, which was the highest quarter on record in terms of gold buys.
WGC also noticed that there was a mysterious gold buyer during the third quarter and China is suspected to be the secret gold purchaser. New statistics from the WGC, published after the Q3 2022 report, show that during the month of October, central banks worldwide obtained 31 tons of gold. The central bank of the United Arab Emirates (UAE) bought the most gold in October, adding another 9 tons of gold to the country’s stash.
WGC data indicates that the UAE acquired 18 tons of gold throughout 2022. Presently, the aggregate quantity of gold acquired by central banks worldwide is at the highest level in 47 years, or since 1974. Metrics show that Uzbekistan stacked another 9 tons of gold to its reserves after buying the precious metal for seven straight months in a row. Uzbekistan has purchased 37 tons of gold this year and gold represents 60% of the country’s total reserves.
Data also shows that the National Bank of Cambodia managed to purchase two tons of gold in September, and Kazakhstan acquired three tons of the yellow precious metal in October. Central banks acquire the precious metal gold in order to diversify their foreign reserves. In essence, it is believed that the precious metal can reduce the overall risk of their reserves because gold has been considered a safe haven asset for thousands of years.
The world’s central banks traditionally obtain gold from large commercial banks or directly from gold mining companies. Gold has been performing well during the last two weeks, and on Wednesday, an ounce is currently trading for $1,778 per unit. Since Nov. 3, 2022, gold has increased 9.15% against the U.S. dollar, from $1,629 per ounce to the current $1,778 per ounce value on Wednesday, Dec. 7, 2022.
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What do you think about the central banks purchasing record amounts of gold in 2022? What do you think about the latest central bank gold purchases in October? Let us know what you think about this subject in the comments section below.
Jamie Redman
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