Purchase of gold by central banks: Do you know who is most responsible for the rise in gold prices? So let us tell you that central banks around the world are buying gold the most and the result is that due to the increase in demand for gold, the price is skyrocketing. According to the World Gold Council, since 1967, the maximum purchase of gold by Central Banks has been made in the year 2022.
Central banks bought record gold
In 2022, the world has seen a lot on the global economic and political front. Since Russia’s attack on Ukraine, inflation in the United States and Europe has hit a record high of 40 percent. After which the central banks of these countries had to make the loans more expensive. So, Russia’s attack on Ukraine increased tension around the world. Inflation increased due to the increase in the prices of basic products due to the war, the currency of all the countries of the world collapsed against the dollar. But this year the Central Banks have bought 1136 tons of gold whose value exceeds $70 billion. After 1967, in 2022, the Central Banks have made the maximum purchase of gold.
Gold is the support in times of crisis
Before the 2008 Global Financial Crisis, during the 1990s, central banks around the world were in the business of selling gold. But after this crisis, he started buying gold again. European banks had stopped selling gold since 2008-09. But since then India, Russia have bought a lot of gold. Central banks believe that even in times of crisis, the value of gold is maintained, so they insist on buying gold. While volatility in currencies and bonds remains high. At the same time, gold provides a great opportunity for central banks to buy non-dollar assets.
RBI bought the maximum gold!
From April 2020 to September 2022, RBI has been the central bank that has bought the most gold. RBI ranked first in the world in 2020, third in 2021. RBI has purchased 41.68 tons of gold in 2020, 77.5 tons in 2021, and 31.25 tons in September 2022. That is, during this period, RBI has bought 132.34 tons of gold. By March 2022, the RBI had a reserve of 760 tonnes of gold, which increased to 785.35 tonnes by September 2022.
Central banks will continue to buy
Experts believe that the purchase of gold by Central Banks will continue. So the shine of the gold will remain intact. Gold is currently trading above Rs 57,000 per 10 grams. But gold has also touched the price of Rs 58,800. Many experts predict that the price of gold will rise to Rs 62,000 this year.
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