MINING REFINING

World Gold Council CEO: Developing central banks will lead way

Mon Sep 23 2024

World Gold Council CEO David Tait told China Daily that smaller central banks will likely pave the way forward for gold. “I do think that the central bank demand for gold will continue, and I think it will be largely driven by developing central banks. Their gold reserves as a proportion of their reserves are still very low by Western standards. I expect them to accumulate more than any other,” he said.

Tait’s comments come after the Chinese central bank appeared to have paused its gold purchases after significantly increasing its reserves over recent years. He said he expects the pause in purchasing to be short-lived.

“The last survey we had, more central banks have told us that over the forthcoming 12 months, they will be buying more gold than ever before,” Tait said. “And I expect to see a constant central bank hand underneath the gold price going forward.” While China’s purchases of gold jewelry have cooled over recent months, which many attribute to the extreme rise in prices, Tait said those loses have been overset by an increased demand for coin and bar bullion.

“The Chinese gold market has transformed from being a follower to a leader in several key areas and is set to continue driving innovation in the global gold market for years to come,” he said.

Who is buying?

According to World Gold Council’s most recent release of central bank gold purchases and sales, several developing countries made large purchases.

This chart shows the net purchases and sales of gold by central banks on a year-to-date basis. (Source: WGC) (credit: PR)

Azerbaijan’s SOFAZ, the nation’s sovereign wealth fund, was the fifth-largest buyer of gold in WGC’s most recent data. Behind the Asian country was the Czech Republic, Iraq, Oman, Kyrgyzstan, Uzbekistan and Serbia — all developing countries.

Source: https://www.jpost.com/