Thread by @JReade_WGC

Gold: After the news earlier that the National Bank of Poland bought a further 13 tonnes of #gold in October taking their purchases to 25t for the year, I thought I would refresh the list of central banks that had bought gold since the start of 2017:

(long-ish thread)

Turkey
Hungary
Poland
Serbia
Russia
Kazakhstan
Tajikistan
Kyrgyz Republic
Belarus
India
Mongolia
Thailand
Philippines
Indonesia
Jordan
Egypt
Qatar
Colombia
Argentina
Suriname

Why are Central Banks adding #gold to their official Reserves?

Natalie Dempster who head's @GOLDCOUNCIL Central Bank and Public Policy team suggests these five reasons:

1) FX reserves are growing;

2) Strategic asset: Gold is re-emerging as a strategically important asset and countries are seeking political independence (de-dollarization);

3) US dollar hedge: The greenback is strong now, but asset valuations, the level of the US$ & budget deficits are undermining its attraction;

4) Increased demand for diversification. Higher global risks and diminished / deteriorating quality of other reserve assets (CF: Brexit, Italy);

5) Change in global trade patterns and the expected future state of the international monetary system.

I was very interested in the statement accompanying the NBH’s ten-fold increase in gold holdings a few weeks ago, citing gold as being a hedge against structural changes in the international financial system.

mnb.hu/en/pressroom/p…

This is something the research team will be focusing upon next year as it could have huge implications for the gold market – and all reserve assets”.

ends

@threadreaderapp Good afternoon, please unroll. Thanks