• FREE Shipping & Insurance on Orders Over $500
    FREE Shipping & Insurance on Orders Over $500
back to top

Central Banks Buy Gold Bullion Hand Over Fist, Most Bought Since 1967 - Nathan McDonald (14/02/2019)

Image of stacks of coins which get progressively larger.

February 14, 2019

Cryptocurrencies have been crushed, the stock market looks poised for a slowdown and the world stands on the edge of a cliff, as geopolitical tensions flare across the globe, waiting for a spark to ignite the flames.

The smart money knows it, and they are starting to move. This includes Central Bankers, which are buying the king of metals, gold bullion, hand over fist.

As I stated at the start of this year, I believe 2019 will see significant accumulation in the precious metals market, which will finally break out of the horrible sideways trading pattern we have been in for years.

As many of you know, gold has been stuck in an abysmal trading pattern, moving slightly above $1300 only to be crushed back down toward the $1100 mark.

This comes in spite of the fact that we now face the most geopolitical uncertainty we have seen in decades.

However, not everyone has been unaware of these dangers.

Central Banks spent 2018 accumulating precious metals in a monumental way, increasing their holdings by the most in one year since 1967. Quietly accumulating while the rest of the financial world happily ignores the alarm bells going off all around them.

Recently, the World Gold Council stated that the world consumed 4,345.1 tonnes of gold throughout 2018, up from 4,159.9 tonnes in 2017.

The chief driver of this move higher was Central Banks, which bought 651.5 tonnes throughout 2018, a staggering 74 percent increase over 2017, and as previously stated, the largest increase since 1967.

Sadly, Western Central Bankers are still asleep at the wheel and were not the main contributors to this increase.

As I have been reporting on for years, countries such as Russia, India, China, Poland, Kazakhstan and Turkey were the main purchasers of gold bullion throughout 2018.

As the vaults in the West continue to be drained, the vaults in the East continue to fill to the brim with real, honest money that is unlikely to ever return.

These countries are happily buying gold bullion in vast quantities, diversifying out of their USD holdings as they do so.

Gold net accumulators know that the winds of change are coming and precious metals are likely to once again play a vital role in the future, as the dominance of the U.S. dollar continues to erode.

I believe both Russia and China are more aware of this than any others, and are actively planning the day in the future in which one of them, most likely China, can replace the USD as the reserve currency of the world.

Gold will play a vital role, and this is just one of the many reasons why they are so eager to accumulate precious metals.

I strongly believe this trend is just the beginning and we haven't seen anything yet.

A major crash in the global economy lays just over the horizon, and it is only a matter of time before precious metals are once again called upon to play the vital protection role they have always filled throughout history.

Global supply of gold is increasing at a snail’s pace, increasing by only 1% last year.

If retail investors finally wake up and begin to move into precious metals, as they did in the last bull market, then we will have an explosive scenario on our hands.

Gold and silver bullion vaults will be drained at a staggering pace, and a runaway move higher in prices will finally break the shackles that have kept it contained for years.

Smart Central Bankers know this, and it is exactly why they are making their move before the masses wake up, accumulating gold bullion while it is on sale, before the inevitable move higher.

Don’t miss a golden opportunity.

Now that you’ve gained a deeper understanding about gold, it’s time to browse our selection of gold bars, coins, or exclusive Sprott Gold wafers.

About Sprott Money

Specializing in the sale of bullion, bullion storage and precious metals registered investments, there’s a reason Sprott Money is called “The Most Trusted Name in Precious Metals”.

Since 2008, our customers have trusted us to provide guidance, education, and superior customer service as we help build their holdings in precious metals—no matter the size of the portfolio. Chairman, Eric Sprott, and President, Larisa Sprott, are proud to head up one of the most well-known and reputable precious metal firms in North America. Learn more about Sprott Money.

Learn More
Headshot of Nathan Mcdonald

About the Author

Nathan McDonald is a libertarian, entrepreneur and precious metals enthusiast. He has always taken a keen interest in free markets and economics since an early age, which naturally led him to become a true believer in precious metals and all that they stand for.

Nathan served eight years in the Royal Canadian Navy as an electronics technician, seeing the true state of the world, before starting his first successful business. He has since gone on to create a number of businesses, all of which are still in operation and growing.

In addition to this, Nathan runs a network of successful precious metals blogs, and a growing newsletter that has attracted readers from all around the world. He is a regular and highlighted writer for the highly respected Sprott Money Blog, which covers world events, geopolitics and of course precious metals.

*The author is not affiliated with, endorsed or sponsored by Sprott Money Ltd. The views and opinions expressed in this material are those of the author or guest speaker, are subject to change and may not necessarily reflect the opinions of Sprott Money Ltd. Sprott Money does not guarantee the accuracy, completeness, timeliness and reliability of the information or any results from its use.


Looks like there are no comments yet.