India continues to buy gold, gold reserve to record high

India continues to expand its gold reserves. In the first half of this year, the central bank bought 29 tonnes of gold, bringing the total gold stock to a record 705.6 tonnes Reached. That is more than a quarter more than at the beginning of 2018, when the Indian central bank started buying gold again. At that time, the country still had 558 tons of gold. The central bank wants to further increase the share of gold in its reserves in the coming years, from 6.5% to 10%. That would mean that a few hundred more tons would be added in the coming years.

According to the World Gold Council, central banks will increase by as much or even more this year. Buy gold than last year. Diversification is the main reason for this. This is because the precious metal offers protection against currency depreciation and economic hardship. In an extreme scenario, the precious metal can also be used to start a new money system, as the Dutch Central Bank previously described on its website.

More central banks are buying gold

Central banks have 333 tonnes of gold in their reserves in the first half of this year added. That was 63% more than in the first half of last year and 39% more than the average per six months over the past five years. This year, many central banks were again active in the gold market, including countries such as Thailand, Hungary, Brazil and Uzbekistan. This trend is expected to continue in the coming years, driven by low interest rates and growing concerns about the stability of the monetary system.

India further expands gold reserves

This contribution was made from Geotrendlines