EDITOR NOTE: For those who feel gold is at too high a price to purchase, or that the yellow metal might have already exhausted its run-up, let’s think for a moment about Poland. The European nation is looking to purchase 100 more tonnes (worth $5.5 billion) of gold in the coming years, adding to their current reserves of 229 tonnes. This is worth some thought. Along with central banks in Eastern Europe, the Mideast, and Asia, Poland is purchasing gold, specifically to dump their dollar reserves. Their preferences for reserves favor not bitcoin or any other cryptocurrency, but the yellow metal itself--what mainstream investors call a “relic,” implying that a non-functional or obsolete currency. The de-dollarization and gold accumulation trend is happening under everyone’s noses, yet like most market trends, most investors will miss the boat. With gold having pulled back from its record highs, now is the most opportune time to load up on non-CUSIP gold coins or bars. If central banks across the globe are doing it, then perhaps that should tell you something about gold and the state of the dollars you keep in your pocket.
Poland’s central bank wants to buy at least 100 tonnes of gold -- worth some $5.5 billion at current prices -- over the coming years, as it continues to expand its bullion reserves, governor Adam Glapinski said in an interview published on Monday.
“At the moment, we have 229 tonnes of gold, of which more or less half was bought during my term in office,” Glapinski told conservative magazine Sieci.
“Over the course of a few years we want to buy at least another 100 tonnes of gold and keep it in Poland as well,” he said.
Over the last decade central banks, particularly in Eastern Europe, the Middle East and Asia, have stepped up purchases of gold, often seeing it as a way to reduce reliance on assets such as the U.S. dollar.
Gold was trading around $1,730 an ounce on Monday.
Originally posted on Reuters