According to the latest data released by the World Gold Council a week ago, the official gold reserves of global central banks increased by 28.4t in August, which also made the global central banks buy a total of 391.5 tons of gold from January to August this year, 63% higher than the same period last year, 39% and 29% higher than the semi-annual averages of the last five years and ten years, respectively, of which Thailand, Hungary and Brazil became the largest buyers in the first eight months of 2021, an increase of 207 tons, which surprised the market.
According to an industry report cited by the US financial website zerohedge on October 28, China's gold consumption in the first three quarters of 2021 increased by 48.44% year-on-year to 813.59 tons due to global macroeconomic policies to support demand, and the China Gold Association said that domestic gold consumption in the first nine months was also 5.89% higher than the level before January to September 2019.
According to the data released by the World Gold Council, the net purchase volume of gold by global central banks in the first four years (2017-2020) has reached 1850 tons, setting a record for the highest purchase speed since the decoupling of the US dollar from gold, which shows that gold is returning from the edge of monetary history to hedge the risk of US dollar exposure.
Not only that, according to Russian media rt last week, there are now more and more voices and measures about digital currencies anchoring strategic economic resources such as local currency, gold, and oil to bypass the centralization of the US dollar, while China, the European Union, Russia and some countries are also jointly revaluing the strategic value of gold.
At the same time, many countries and institutions also think of gold stored in the United States, when for various historical reasons, more than 60 countries and international institutions stored nearly 7,000 tons of gold in the Federal Reserve's underground vault of a 12-story granite building at 33 Liberty Avenue in New York, and the reason that triggered the global central bank to accelerate the purchase of gold in recent years began as early as the 2008 FINANCIAL crisis in the United States, since march last year, the purchase rate has begun to accelerate, we believe, This could lead to important changes in the global financial and monetary system since the U.S. closed the gold-to-dollar window in 1971 and the dissolution of the Bretton Woods system (see chart below for details).
The analysis believes that many European countries may have been fully prepared for the restoration of the gold standard or the euro digital currency supported by gold, and even, just a month ago, the Dutch central bank also hinted that if the dollar collapses, gold can be used as a basis for building a monetary system again, and seems to be in favor of the gold standard, which is quite surprising, because this is a Western central bank that provides a mortgage with negative interest rates on the currency.
In fact, this can be seen in the waves of 14 countries in recent years, including Germany, the Netherlands, Belgium, Switzerland, Venezuela, Romania, Austria, Russia, Slovakia, Italy, Australia, France, Turkey, Hungary, etc., announcing or planning to ship gold home in advance.
This is the job of the treasury managers of the Central Bank of Russia
Just a few weeks ago, according to a report released by the Bank of Poland, the country unexpectedly announced a top-secret operation to ship 8,000 gold bars home from overseas vaults such as the Federal Reserve and the Bank of England, which also means that Poland became the 15th country to officially announce the return of gold, but there are still 123.6 tons of gold left in the Bank of England and the Federal Reserve, followed by last week' acceptance of the Polish media streffa Biznesu's special interview shocked the gold market once again by saying it would add another 100 tonnes of gold in 2022 and ship the remaining gold stored in the United States back home.
Polish officials hold gold shipped back from overseas in front of the vault
Just two weeks ago, the governor of Poland's central bank had said that it was likely to buy at least 100 more tons of gold in the next few years to show the country's economic strength, surprised the global market, and the data showed that Poland bought 3.1 tons of gold in the first half of 2021, increasing its gold reserves to 231.8 tons (8% of total reserves).
Polish officials hold physical gold bars in front of bank vaults
According to a latest industry report cited by the US financial website Zero Hedging on November 3, although the official US data shows that its gold reserves are 8133 tons, the agency has been suspicious that this may just be an accounting technique, for example, the most puzzling thing is that the Bundesbank has decided to ship gold back to China. Why phase it out? Also give the United States a 7-year grace? In fact, from 1950 to the present, the gold of various countries stored in the New York vault has not been audited, all of which has made the Fed's gold puzzle suspicious, and things have made new progress.
Federal Reserve Bank of New York underground vault image source bull
According to a new report released by the Federal Reserve a week ago, the amount of gold held by the Fed for the world's central banks has fallen to a new low of 5738.15 tons, compared with 5741.84 tons a month ago, and 5750 tons two months ago, which also means that about 12 tons of gold have disappeared from the vault or have been withdrawn from the United States by foreign central banks.
At the same time, in recent months, the financial team of bwc Chinese network headlines has also published some reports on gold reserves, and readers and friends have left us messages and put forward ideas on whether it is necessary for China to ship back gold.
This was reported in the Russian media rt's tracking report that the Fed has blocked several requests for gold from many countries, including China and Germany. However, according to the explanation of professionals quoted by rt, the ownership of gold in the Fed vault is clear, although Germany's view of gold is rejected, but the Fed has no right to refuse, and it is not afraid to prevent the central banks of the gold countries from viewing or shipping back the gold stored in the United States, so it is not particularly urgent to take this part of the gold reserve back for their own safekeeping.
That is to say, if the Fed wants to maintain the main monetary reserve status of the US dollar, the United States will not allow the insecurity of gold reserves to occur, and the Chinese market is now facing the financial game ability of some countries is also increasing, so it is not particularly urgent to take this part of gold back for its own custody. It was in these contexts that something suddenly happened that surprised the market.
According to a follow-up report published by the US financial website zerohedge on October 30, the defender of the gold standard, US Congressman Alex Mooney, once again submitted a proposal to the US Treasury department three weeks ago to review the Transparency in Gold Reserves Act (hr2559), requiring an open and transparent audit of gold, followed by a proposal (HB2123) made by the US state of Kansas in an update two weeks ago, showing that the state will recognize gold, Silver is legal tender and makes it comparable to the US dollar. (End)