Brazil doubles gold stock in three months

Brazil has almost deprived its gold reserves in three months Doubled. In the period from May to July, the central bank bought a total of more than 62 tonnes of gold, raising the total stock to almost 130 tonnes. In doing so, the South American country joins an ever-growing group of countries that Buy gold.

In July, the central bank bought an additional 8.5 tonnes of gold, after adding 11.9 and 41.8 tonnes to its reserves in May and June, respectively Added. The last time Brazil bought gold was in 2012, when it doubled its reserve in three months from 33.6 to 67.2 tonnes. The gold stock now represents a value of €6.4 billion, equivalent to just over 2% of the central bank's total reserves.

Central banks buy gold

Central banks buy gold as the ultimate safe haven. The precious metal has no counterparty risk and offers protection against currency depreciation. Also, gold has no political risk, as it is not sensitive to economic sanctions. It can be used as a reserve of value at any time and under all circumstances. Central banks can also use gold to start a new monetary system.

Central banks have added a lot of gold to their reserves in recent years. In doing so, they hedge against the risk of currency depreciation and a possible 'reset' of the monetary system. This is because the precious metal is solid collateral to build a new financial system.

Brazil doubles its gold reserves again (Source: Banco Central do Brasil)

This contribution was made from Geotrendlines