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Central Banks Will be Net Purchasers for Gold in 2021

Net Purchasers
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EDITOR NOTE: Central banks bought a total of 656.6 tonnes of gold in 2018, 668.5 tonnes in 2019, and only 279.4 tonnes in 2020. In the first quarter of this year, central banks have so far purchased 95.5 tonnes. The World Gold Council sees central banks as net buyers in 2021. The issue of inflation, which will affect each country differently according to how they managed their monetary policy and stimulus spending during the pandemic, is going to be a prime determinant as to how much gold each country will buy. We know that many central banks are going directly to their local mining sources to acquire newly-produced gold. Whatever the case may be, retail gold mania has slowed since reaching its peak in August 2020. Now’s the pullback that the central banks, financial institutions, and smarter retail crowd have been waiting for. Once inflation begins accelerating food price spikes across the globe, then worldwide investment demand will likely trigger explosive moves into record-high territory.

Central banks remained net gold buyers in the first quarter of 2021, according to data published by the World Gold Council on April 29.

Overall, central bank reserve managers boosted their holdings by 95.5 tonnes, the WGC said. This is down 23% from the 124.1 tonnes net purchases by central banks recorded in the first quarter of 2020. The WGC forecasts central banks will be net purchasers for the whole of 2021.

“Net sales in January were outweighed by net purchases in both February and March,”

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