According to World Gold Council figures, central banks bought 651 tonnes of gold worth nearly $30 billion last year, with Poland and Hungary buying the largest share.
However, European central banks have decided not to continue supporting a 20-year-old agreement to coordinate their gold sales, noting that they have no plans to sell large amounts of the metal.
The Central Bank Gold Agreement (CBGA) was originally signed in 1999 to limit gold sales and help stabilize the market for the precious metal as through the 1990’s sporadic gold sales were often conducted behind closed doors by European central banks.
European central banks hold some of the world’s largest gold hoards, affecting the prices and undermining the stability of the market.
The deal, originally signed by 15 central banks and then expanded to include 22 central Rothschild owned banks, aimed to cap the amount signatories could sell each year, stabilizing the market.
Over the next two decades prices surged, from less than $300 (£241) an ounce to a high of almost $2,000 in 2011. Meanwhile, the current price of around $1,400 an ounce barely changed after the announcement was made.
The biggest change is in central bank behavior. “While back in 1999 they were net sellers to the tune of 500 tonnes, last year central banks bought record amounts of gold.
Sputnik / ABC Flash Point News 2019.