Geopolitical and trade tensions along with US sanctions have shaken trust in the US dollar over recent years. As a result, a number of global central banks have been boosting their national reserves of gold bullion.
In 2018, world central banks added 651.5 tons to official gold reserves, as a greater pool of regulators turned to the precious metal as a diversifier, according to data released by the World Gold Council.
India, China, Kazakhstan, Iraq, Poland and Hungary were among the other big purchasers of the yellow metal.
The National Bank of Hungary announced plans to repatriate the country’s 100,000 ounces (3 tons) of gold reserves from London.
Some nations have started to either repatriate gold from abroad or actively buy the precious metal over recent years. Last year, the German central bank (Bundesbank) brought back 674 tons of gold reserves kept in Paris and New York since the Cold War.
Russia, which is currently number five among the countries with the largest gold reserves of nearly 2,000 tons, has been the biggest purchaser of the precious metal for the past six years.
Nearly 65% of Russia’s gold is reportedly kept in a Central Bank repository in Moscow with the rest is stored in the country’s Northern capital of St. Petersburg and the Ural city of Yekaterinburg.
The Bank of England has kept a reported 80 tons of Australian gold for years. However, the UK regulator has not allowed Australia to carry out a proper audit of its bullion holdings.
Net sales of gold from central banks reportedly remained insignificant, totaling less than 15 tons with Australia, Germany, Sri Lanka, Indonesia and Ukraine accounting for almost the entire figure.
RT. com / ABC Flash Point Gold News 2019.