The World’s Central Banks Are Buying Gold At The Fastest Pace In 55 Years

The world’s central banks are buying gold at the fastest pace since 1967 to avoid the worst effects of global de-dollarization, foreign media reported on Jan. 20. Data from the World Gold Council shows that recent demand for gold has exceeded any annual amount over the past 55 years, with a large portion of that being driven by the desire to diversify their central bank reserves away from the dollar. As of December 2022, the World Gold Council estimates that official financial institutions worldwide purchased 673 metric tons of gold; nearly 400 metric tons of gold were purchased in the third quarter of 2022. This is the largest quarterly purchase since 2000. Precious metals market analysts believe that the global monetary system is losing confidence in the U.S. dollar, and the trend of central banks further diversifying their reserves by making large purchases of precious metals is not going to change anytime soon. The U.S. and its allies have frozen some $300 billion worth of Russian foreign exchange reserves, leading those countries that rely on the dollar and other foreign currencies to worry about holding large amounts of dollars and whether they are truly safe. By putting a larger percentage of their foreign reserves into gold, these central banks are sending the message that they don’t want to rely on the dollar as their primary foreign reserve asset. And that could prompt more countries around the world to be reluctant to rely on the dollar. Meanwhile, stocks of the metal on the New York Mercantile Exchange and the London Metal Exchange fell to their lowest levels ever. A massive de-dollarization is underway and misdirection of information and price is being used to hoodwink the public.