ISLAMABAD: Some countries are buying gold in large quantity and with an unprecedented pace not seen in the past five decades.
Turkey, India, Qatar and Uzbekistan are among the leading buyers of gold in the world. These countries are amassing glittering gold through their central banks to strengthen their valueable assets.
According to the World Gold Council (WGC), central banks of different countries have purchased a record 400 tonnes of gold valuing $20 billion in the third quarter of 2022 (July-Sept).
The WGC report said the world’s gold demand amounted to 1,181 tonnes during July-Sept quarter, 28% Y/Y growth and the largest buyers are Turkey, Uzbekistan, Qatar and India.
According to the WGC, Turkish Central Bank remains the leading gold buyer in 2022 and the country added 31 tonnes in Q3 to enhance its total gold reserves to 489 tonnes.
Also, the Central Bank of Uzbekistan purchased 26 tonnes; Qatar bought 15 tonnes while the Reserve Bank of India purchased 17 tonnes from July-Sept 2022 quarter. At present, gold reserves with the central bank of India have increased to 785 tonnes.
The rapid trade of gold indicates that gold is still considered the pre-eminent safe asset in times of uncertainty or turmoil. Gold is also useful against inflation hedge, though experts say that this only rings true only over extended timelines measured in decades or even centuries.
Importantly, gold is a non-interest bearing expensive asset, and investors move their money to higher yielding instruments when interest rates are increasing.
