Everything indicates that central banks will continue to be the net buyers of gold in 2022. For them, buying gold is essential, since it is a very important reserve asset, and data from the World Gold Council confirms this. Before delving into the forecasts for the purchase of gold by central banks for the remainder of the year, we want to review the latest figures they have recorded.
Central banks bought up to 20.6 tons of gold last April
We have recent data for April, in which banks recorded purchases of up to 20.6 tons of the precious yellow metal. In contrast, gold sales were lower than in previous months, barely reaching 3.5 tons. They have thus become the net buyer’s par excellence so far this year.
Gold purchases expected in 2022
The data that emerges as a result of the latest survey carried out by the World Gold Council of the 57 central banks that responded are very interesting:
- 25% of central banks plan to increase their gold reserves in the coming months. Last year 21% answered the same.
- 80% of the central banks of emerging countries believe that world gold reserves will increase in 2023.
Analysts affirm that the gold purchases planned for the remainder of the year are motivated above all by the growing concern that there is a global financial crisis. Not only that, but other factors lead us to believe this, such as the changes that will take place in the international monetary system, or the increase in economic risks in those economies that have reserve currencies, for example.
The results of the survey also reveal clear differences between the central banks of the most developed economies, and those that are part of developing economies or emerging markets. 25% of these entities that bet on buying gold belong to the latter.
The experts from the World Gold Council point out that the central banks of these emerging countries have more problems when it comes to maintaining order with capital flows and the stability of their currencies. For this reason, they tend to consider gold as a key part of their reserve management strategy, especially at times when they need assets to mitigate risks.
Also, if we go further, gold is expected to increase as a proportion of reserves over the next 5 years.