information from world gold council (World Gold Council) on demandgoldOf central banks around the world for the last 30 years or from 1992 to 2022, it was found that there was a clear change in the gold purchase policy of each country after the birth.Tom Yum Kung Crisis” in the year 1997 and “global financial crisis” During the year 2007-2008
in the late 90s central bankMany places around the world aregold net seller(sell more than buy) amid stable macroeconomic conditions andgold pricethat is in a continuous downtrend
Until 2010, the central banks have turned to be “Net buyers of gold” (bought more than sold) each year to the present.
- “Thai” bought 168 tons of gold in 22 years.
whileInternational Monetary Fund (IMF) ranked the top 10 countries where central banks bought the most gold since the end of 1999-2021, found that “Thai” The 8th highest gold purchase in the world totaling 168 tons, representing 2% of all gold purchased during those 22 years.
While the top three gold buyers between 1999 and 2021 are Russia (1,888 tonnes), China (1,552 tonnes) and Turkey (541 tonnes) respectively.
In addition, the gold purchases of the top 10 countries totaled 5,623 tonnes, representing 84% of the total gold purchased by these banks during the period.
- Why should central banks buy gold?
gold There are three main reasons why central banks hold gold:
1. Balancing International Reserves
Central banks hold gold as part of their reserves. to manage the risk of holding currency and strengthening stability in the event of economic turbulence.
2. Hedge against currency risks and maintain purchasing power in the global market.
Gold mitigate the risk of a decrease in the purchasing power of their own national currency in the global market due to a decrease in other currencies (mainly the US dollar) due to inflation.
3. Portfolio Diversification
Gold has an inverse relationship with the US dollar. When the value of the dollar decreases Gold prices tend to rise. This protects the central bank from volatility.
information The World Gold Council also stated that in 2022 Global central banks bought a record 1,136 tonnes of gold worth about $70 billion. It was the fastest gold rush by central banks since 1967 amid hyperinflation and geopolitical uncertainty.