Central Banks Step Up Gold-Buying Across the Globe

world buying gold

Over the past year, many of us have become familiar with the US dollar’s actual condition and its downward decline in value.

As a result, significant events like the COVID-19 pandemic are usually what exposes the true stability or lack thereof, behind economies and their financial system.

Some countries saw and believed that the US dollar was headed for a decline well before the pandemic hit.

Over the last decade, central banks in nations like Asia, the Middle East, and Eastern Europe have significantly increased their gold buying efforts.

The critical takeaway here is that this same play has always been used as a way for banks to reduce their reliance on assets such as the dollar.

Historically, this is one of gold’s most favorable known uses.

In a recent interview, the governor of the National Bank of Poland, Adam Glapinski, stated that their plans as a country were to increase their central bank holdings of gold over the next few years.

“At the moment, we have 229 tonnes of gold, of which more or less half was bought during my term in office,” stated Glapinski.

“Over the course of a few years, we want to buy at least another 100 tonnes of gold and keep it in Poland as well.”

Glapinski feels that this is a great way to display the country’s economic strength.

This would warrant a rise in their central bank’s gold reserves from a current 9% to 20% over his next term, which equates to $5.5 billion at current market prices.

Over the years of 2018 and 2019, the same institution purchased around 126 tons of gold bullion and repatriated about 100 tons from the Bank of England’s vaults.

Glapinski also made it clear that the chances of Polish rates changing “are close to zero” and was confident that his economy would grow at a rate of 5% or possibly even greater once the pandemic is over.

Then there’s Russia. The country currently holds more gold reserves than US dollars. Their central bank bought $4.3 billion worth of gold between June 2019 and June 2020.

When nations worldwide are taking measures to hedge their wealth against the dollar, it may be beneficial to stop and take notice.

These facts, regardless of what else is taking place economically, are enough to gain the attention of millions, including us.

With the pandemic ongoing, this may be more of a warning sign to protect your assets from the weakening dollar.

Learn how to diversify and protect your wealth and against the declining dollar with assets like gold by calling American Hartford Gold at 800-462-0071.

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