Central Banks bet big on Gold

Central banks increased their gold reserves by around 60 tons in October. The most active buyers were India, Poland, and Turkey. Altogether, central banks bought approximately 694 tons of gold in the third quarter of 2024, a volume similar to 2022. While high gold prices seemed to deter some buyers in recent months, the rebound in October demonstrates the strong interest of central banks in continuing to accumulate gold. For central banks, gold represents risk diversification. So far this year, Poland has added 69 tons to its reserves, amounting to around 17% of its total reserves. Poland aims to hold 20% of its reserves in gold. After five months of net sales, Kazakhstan increased its gold reserves for the first time by five tons. The Czech National Bank grew its gold holdings for the 20th consecutive month in October and now holds 49 tons. Kyrgyzstan also made significant purchases, adding two tons of gold in October. Among the active gold buyers is the Bank of Ghana, which increased its reserves from about nine tons in May 2023 to 28 tons.

In China, the appetite for precious metals was lower in October due to high local prices dampening demand. Since the beginning of the year, China has imported about 20% less gold compared to the previous year (net gold imports). Additionally, the Chinese central bank has not increased its gold reserves since May. The sharp rise in gold prices this year has been driven partly by central banks’ buying spree. On the other hand, geopolitical crises and interest rate cuts have supported gold prices. Private investors should also consider holding some gold and shares of gold companies, such as Tudor Gold or Fury Gold Mines.

Tudor Gold – https://www.commodity-tv.com/play/tudor-gold-exploring-the-supercell-one-which-has-the-potential-to-be-a-mine-by-itself/ – owns the Treaty Creek Project in the Golden Triangle of British Columbia, featuring both gold and copper.

Fury Gold Mines – https://www.commodity-tv.com/play/fury-gold-mines-focus-on-eleonore-south-exploration-and-looking-for-a-partner-for-committee-bay/ – operates in Nunavut and Quebec, boasting a multi-million-ounce gold platform. At the Eau-Claire Project, over 12 grams of gold per ton of rock have already been identified.

For the latest corporate updates and press releases from Fury Gold Mines, visit their official page: (- https://www.resource-capital.ch/en/companies/fury-gold-mines-ltd/ -).

In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.

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