Central banks rely heavily on gold
In October, central banks bought more gold than they had done all year.
Central banks therefore increased their gold reserves by around 60 tons in October. India, Poland and Turkey were particularly eager. In total, central banks purchased around 694 tons of gold in the third quarter of 2024. High gold prices have apparently deterred some buyers in recent months, but the recovery in October speaks for the central banks' strong interest in continuing to accumulate gold. For them, gold stands for the diversification of risks. So far this year, Poland has added 69 tons to its reserves, which corresponds to around 17 percent of its total reserves. Poland's goal is to hold 20 percent of its reserves in gold. After five months of net sales, Kazakhstan has increased its gold reserves again for the first time, by five tons. The Czech National Bank increased its gold reserves for the 20th month in a row in October. It now holds 49 tons of gold. Kyrgyzstan has also made substantial additions. Two tons of gold were added in October. The Bank of Ghana is also among the eager gold buyers. In May 2023, its gold reserves were still around nine tons, but Ghana can now boast 28 tons of gold.
In China in general, the willingness to buy precious metals was not as high in October. This is because high local prices dampened the desire to buy somewhat. Since the beginning of the year, China has bought around 20 percent less gold than in the previous year (net gold imports). The Chinese central bank has not increased its gold reserves since May. The enormous rise in gold prices this year was driven on the one hand by the central banks' desire to buy. On the other hand, geopolitical crises and interest rate cuts boosted the gold price. Private investors should also own some gold and shares in gold companies, such as Tudor Gold or Fury Gold Mines.
Tudor Gold - https://www.commodity-tv.com/ondemand/companies/profil/tudor-gold-corp/ - owns the Treaty Creek project in the Golden Triangle in British Columbia, which contains gold and copper.
Fury Gold Mines - https://www.commodity-tv.com/ondemand/companies/profil/fury-gold-mines-ltd/ - operates in Nunavut and Quebec and has a multi-million-ounce gold platform. The Eau Claire project has already identified more than 12 grams of gold per tonne of rock.
Current company information and press releases from Fury Gold Mines (https://www.resource-capital.ch/en/companies/fury-gold-mines-ltd/ ).
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