AUS
NZ
UK
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USA
FRA
GER
ESP
ITA
NLD
PRT
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IND
POL
BRA
ZAF
RUS
CHN
UAE
Central banks globally accumulated a record 483 tonnes of gold, underscoring a significant shift towards assets perceived as safe havens. According to the Kobeissi Letter, this volume surpasses the previous record of 460 tonnes set in the first half of 2023 by 5%. Notably, central banks purchased 183 tonnes of gold in the second quarter of 2024, marking a 6% increase compared to the same period last year.
The National Bank of Poland, the Reserve Bank of India, and the Central Bank of Turkey emerged as the leading buyers of gold during this period. The president of the National Bank of Poland, Adam Glapinski, indicated that the bank plans to continue increasing its gold reserves, aiming for gold to constitute 20% of its total reserves.
Spencer Hakimian, founder of Tolou Capital Management, noted that major economies such as China, India, Russia, and Saudi Arabia are moving away from Western reserve assets, turning instead to gold as a stable and neutral reserve asset. This sentiment is echoed by tech entrepreneur Kim Dotcom, who suggested that the introduction of a gold-backed stablecoin by the BRICS nations (Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia, and the United Arab Emirates) could further drive up gold demand and impact the value of the U.S. dollar.
Gold's performance in 2024 has been notable, with prices reaching an all-time high of $2,525 per ounce on August 27. This represents a 23% increase year-to-date, outpacing the S&P 500's gain of 18%. In contrast, {Bitcoin] (BTC) has appreciated by 37% in 2024, despite a 22% decline from its March peak. Although Bitcoin's recent performance has been strong, comments from Peter Schiff highlight skepticism towards Bitcoin, noting its gains were largely confined to the first two months of 2024, despite the introduction of Bitcoin exchange-traded funds in the United States.
Despite these developments, central banks continue to approach Bitcoin with caution, maintaining a preference for traditional reserve assets like gold.
