The World Gold Council recently reported that central bank demand for gold rose 22% in the third quarter of 2018 vs. the same quarter in 2017, reaching the highest level of quarterly demand since Q4’15.
This also marks the highest year-to-date central bank demand in the first nine months of any year since 2015.
In the third quarter, Russia added the most of any nation – 92.2 metric tons – pushing its total reserve to over 2,000 tons, as Russia is basically divesting itself of most of its U.S. Treasuries in exchange for gold.
Turkey was the second-largest gold accumulator last quarter, adding 18.5 tons in a quarter when its beleaguered currency (the lira) lost 25% to the dollar. India is next in line, adding 13.7 tons of gold last quarter.
Kazakhstan was the fourth biggest buyer last quarter, adding 13.4 tons, bringing its total holdings to 335.1 tons, up from just 131 tons five years ago. The currencies of these gold-accumulating nations have been particularly weak to the dollar this year, which means that gold has risen in terms of their home currencies, even though it has fallen in dollar terms.
Here are the four biggest gold-buying nations in the last quarter, and how gold has performed in their home currency during the first nine months of 2018 (compared to a 5.6% decline in dollar terms).
Such massive levels of gold buying by Russia and China should raise “red flags” in Washington, D.C. These two superpowers have been in the process of selling their dollar-based Treasury holdings and buying gold to gain more financial flexibility – something that every wise investor should consider doing now.
Our Founding Fathers knew that gold and silver were the only true form of money. They learned the hard way from using worthless paper “Continental” currency during the Revolutionary War. Article I, Section 10 of the U.S. Constitution says, “No state shall…coin money, emit bills of credit, make anything but gold and silver a tender in payment of debts.”
Like central banks today, our forefathers knew that only gold and silver were reliable forms of money. To buy American gold is patriotic, too.
Mike Fuljenz is a member of the Newsmax Finance Brain Trust. He is also the editor of the NLG award winning Michael Fuljenz Metals Market Weekly Report. Discover more by Clicking Here Now.
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