#China stands out as largest buyer of #gold this year

Central banks have bought 800 tonnes in first nine months of the year, up 14% year-on-year, according to a report by the World Gold Council 

Central banks in emerging markets look to reduce reliance on US dollar for reserves holdings

China has stood out as the largest purchaser of gold this year as part of a 11-month buying streak. The People’s Bank of China has reported snapping up 181 tonnes this year, taking gold holdings to 4 per cent of its reserves. Poland, at 57 tonnes, and Turkey, with 39 tonnes, followed as the next largest buyers in the third quarter. Central banks have bought 800 tonnes in the first nine months of the year, up 14 per cent year-on-year, according to a report by the World Gold Council

Central banks report gold acquisitions to the IMF but global flows of the yellow metal suggest that the real level of buying by official financial institutions — especially China and Russia — has been far higher than officially reported. 

The WGC estimated 129 tonnes of central bank purchases above what was officially reported in the third quarter, taking overall official sector buying to 337 tonnes. The total was more than double of the previous quarter but down 27 per cent on the same period a year ago. In August, BMO analysts wrote that its analysis suggested that privately owned gold holdings and those under the central bank in China “are significantly higher than annual consumer demand and official purchases might suggest”.  

See the whole article on the FT here: https://www.ft.com/content/abc39431-1755-4906-b11e-ee9e53baadfe

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MasterMetals

@MasterMetals