The global gold reserves reported by central banksthrough the IMF and other public sources, increased by 77 net tons last September and nine countries bought a ton or more. Furthermore, as a sign of the strength of central banking demand, it is worth noting that gross sales totaled 1 ton, so gross purchases for the month, 78 tons, eclipsed sellers. So, with the September purchases, Central banks added 337 net tons of gold in the third quarter. This is the second highest record for a third quarter behind that of 2022, when, exceptionally, 459 tons. However, the demand from central banks accumulated in these three quarters is a 14% above the same period in 2022with a record of 800 tons. While there is a core of committed regular buyers, the range of countries whose central banks have increased their reserves in recent quarters is wide.
In this sense, China remained the largest buyer of goldadding others 26 tons of gold to its treasury in September. It was the eleventh consecutive month of increase in its gold reserves. Since the beginning of the year, the People’s Bank of China has increased its reserves by 181 tons and has added 232 tons since resuming official purchases in November 2022. At the end of September, China officially owned 2,192 tons of gold, which represents 4% of its total reserves. In this regard, it is worth remembering that the market suspects that China has more gold than it officially reveals. It is speculated that those holdings, off the books, are in a separate entity called State Administration for Foreign Exchange (SAFE). For example, last year there were large unreported increases in central banks’ gold holdings and those that often fail to report their purchases include China and Russia. Many analysts believe China is the mystery buyer hoarding gold to minimize exposure to the dollar. It should be remembered that in 2009 the People’s Bank of China stopped reporting on its gold holdings. Then, in June 2015, the Chinese central bank suddenly announced that its gold reserves had increased by 57%.
Another big buyer of gold in September was Poland, which added 19 tons to its reserves. So far this year, the National Bank of Poland has bought 105 tons of goldin line with the plan to add 100 tons to its reserves, announced by the president of the Bank of Poland, Adam Glapiski, in 2021who recently said the buying is likely to continue: “This makes Poland a more credible countrywe have a better position in all ratings, we are a very serious partner and we will continue to buy gold. The dream is to reach 20%”.
Also Türkiye stood out by buying 8 tons of gold for its reserves in September and appears to be back on track to expand them. The Turkish central bank sold 160 tons of gold between last March and May, but bought again in the third quarter. According to experts, the big gold sell-off earlier this year was a specific response to local market dynamics and probably did not reflect a change in trading strategy. Turkish central bank long-term gold. He sold gold in the local market to meet demand after the government imposed import quotas in a bid to improve its current account balance.
For your partIndia bought 7 tons of gold in September. I had bought small quantities during the previous four months, but this was the largest purchase of the Reserve Bank of India (RBI) since July 2022. Since resuming purchases in late 2017, the RBI has bought more than 200 tonnes of gold. In August 2020, there were reports that it was considering significantly increasing its gold reserves.
The other buyers in September include Uzbekistan (9 tons), Czech Republic and Qatar (2t), Singapore (1 t) and Kyrgyzstan (3 tons). The only notable sale was Kazakhstan1 ton.
Experts believe central banks are almost certainly on track for another colossal year of buying, after a record 2022. They even recognize that purchasing power has surpassedto a certain extent, their expectations.