China and Russia love gold. With a lot of central banks dumping United States debt, a growing number of them are embracing the yellow metal. And it isn’t subsiding.
According to official numbers from the International Monetary Fund (via Reuters), Russia increased its gold holdings by 16.2 tons, while China ramped up its gold holdings by 10.9 tons. Surprisingly, Kazakhstan was another major buyer as it accumulated 3.2 tons. Turkey took on 2.6 tons.
Last year, central banks accounted for nearly one-fifth of global gold demand.
Ostensibly, central banks are attempting to diversify their holdings by gradually getting rid of U.S. Treasuries in favor of the precious metal.
Venezuela, the socialist paradise, was one of the few central banks to sell off its gold reserves. The socialist government sold 34.2 tons in February and an additional 8.5 tons in March. This comes as the socialist government is trying to prevent a complete economic collapse thanks to its price controls and central planning endeavors.
At the time of this writing, gold is trading at $1,207.80 per ounce.
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