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Tag Archives: Central Banks

Q2 Central Bank Gold Buying 73% Above 5-Year Average

Central banks globally added a net 199.2 tons of gold in the second quarter of 2021. That was the highest level of quarterly net purchases since Q2 2019 and 73% above the five-year quarterly average, according to data compiled by the World Gold Council.Second-quarter gold purchases by central banks dove the half-year net total to 333 tons. That’s 39% higher than the five-year H1 average.Thailand increased its gold reserves by 90.2 tons, making that country the biggest buyer through the...

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Banking faces seismic changes

Goldmoney Insights  The role of commercial banks in the global economy is changing, with lending to governments and their agencies now more important than lending to goods and services industries. It is a trend which is due to continue. The new Basel 3 regulations seem set to encourage this trend, despite retail depositors being accorded a stable funding status. Central bank digital currencies are anticipated to augment and perhaps replace non-financial business credit over the next five to...

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Central Banks Continue to Be Bullish on Gold

Central banks added gold to their reserves in record amounts in 2018 and 2019, but buying slowed last year with the onset of the COVID-19 pandemic. The slower pace has continued into 2021, but buying is ahead of last year as many countries continue to load up on the yellow metal. The World Gold Council projects gold will continue to play an important role in central bank reserves in the coming year.According to the WGC’s Central Bank Gold Reserves Survey, 21% of the world’s central banks...

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Are Central Bank Digital Currencies the Future of Money?

Today we had the pleasure of participating in the (virtual) ringing of the NYSE closing bell to celebrate the six-year anniversary of the launch of our airlines ETF. It’s been an incredible journey, and we extend our gratitude to everyone who helped make it possible. Wheels up! In case you missed it, you can watch the replay of the bell ringing by visiting nyse.com/bell! Central Banks Have Been Net Sellers of Gold So Far this Year Some major changes could be coming soon to a central bank...

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The Logical Basis is a Difference in Incentives

British economist Charles A. E. Goodhart writes: Thus, people voting with their dollars are supposed to be rational and to reach an efficient outcome, but when they vote with their ballots, they may not achieve their own best interests. I have always found it difficult to perceive the logical basis for this dichotomy. This is from his “The Free Banking Challenge to Central Banks,” Critical Review, Summer 1994. The basis for the dichotomy is a difference in...

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Why Do We Put So Much Faith in Central Bankers?

Well-known management consultant Peter Drucker perfectly described the predicament faced by central bankers.You can’t manage what you can’t measure.”So why do we put so much faith in central bankers?Initially, central banks were conceived as the lenders of last resort for the banking system, but in the words of economist Pascal Hügli, they have mutated into “dealers of last resort.” They are the fire department called in to put out the world’s economic fires.The Federal Reserve’s response...

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Corona Strikes Back In Europe. Will It Boost Gold?

The number of new daily infections in Europe is rapidly increasing, even reaching new heights in several countries. That is just another reminder that the second wave in fall or winter is upon us. Yes, I know. You are all fed up reading about the coronavirus. And yet, the coronavirus is not fed up with spreading around the globe. The number of new daily infections keeps going up, as the chart below shows. Most significantly, the coronavirus cases are in a dramatic rise across Europe. The...

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Which Countries Own the Most Gold?

Which countries have the biggest gold reserves?Central banks globally have been increasing gold holdings over the last few years. Central bank demand came in at 650.3 tons last year. That was the second-highest level of annual purchases for 50 years, just slightly below the 2018 net purchases of 656.2 tons. According to the World Gold Council, 2018 marked the highest level of annual net central bank gold purchases since the suspension of dollar convertibility into gold in 1971, and the...

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India Central Bank Considers Big Increase in Gold Reserves

According to a report by an Indian TV station, the board of the Reserve Bank of India (RBI) is considering significantly raising its gold reserves.According to the report, the RBI is mulling upping its gold holdings from the current level of 6.5% of total reserves to 10%. As part of the move, the Indian central bank would also lower its holdings of US Treasuries.Officials will create a roadmap for increasing gold reserves and consider it at the next RBI board meeting in October.The Indian...

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