Bernstein informs that central banks are buying gold at an unregistered pace since the Second World War. Do the institutions feel that the global crash is fast approaching? Are the reasons different?
Today, an ounce of gold costs $ 1,322. It follows that in two years the price of bullion increased by 8%.
The new report by Bernstein also noted that today it is mainly central banks that buy gold. Previously, more frequent investors were companies (especially jewelery) or natural persons. There is no need to look for examples far away. This is how the gold purchases look like, behind which the National Bank of Poland stood in 2018:
July 2018 – 2 tons of gold;
August – 7 tons;
September – 3 tons;
October – 13 tons.
Rzeczpospolita newspaper has calculated that the NBP now has 129.1 tons of gold. It’s a big jump compared to 103 tonnes before starting shopping in July. Before that date, the bank did not perform any significant movements on the gold market. However, similar movements are also carried out by the banks of China, India, Turkey or Hungary.
Where does the trend change from?
Why does the NBP and other central banks buy gold? Bernstein analysts mention these reasons: “geopolitical risk, debts of countries, potential problems with supplies and the belief that gold can give more returns than other assets.”
The company notes in a note to customers in January 2019:
It is significant that for the first time since the end of Bretton Woods and for the first time since the end of the Second World War, purchases of gold by central banks have increased.
Experts Bernstein say that the demand for gold will grow, and this – with limited supply – will lead to further price jumps.
Does this mean, however, that central banks “feel” the coming crisis? Not necessarily. It may be for example for purchase for profit, and not for protection against a crash. Anyway, as history shows, it is rare that crises occur when someone expects them.
About the so-called However, a “global reset” is being said in expert environments for several years. Professor Krzysztof Piech even thinks that the crisis may have started and is slowly starting up … What are you?