Central bankers look set to go on a gold buying binge this year in the wake of the Covid-19 pandemic, new research shows.
And the leading reason for the likely desire to buy bars of bullion is fear of another financial crisis, according to a recent report from industry group World Gold Council.
Central Banks Doubling Down on Gold
The survey showed that 20% of the banks that responded to the survey said their central bank would likely increase their gold holdings, versus 8% of those responding the same question a year ago. That’s more than double the percentage.
Central Banks have been on something of a buying binge recently and the survey results suggest they could gobble up even more of the yellow metal. Such banks snapped up 650 metric tons of the metal last year, which is worth more than $36 billion at recent the recent price of $1,740 a troy ounce.
Overall, three quarters of all the central banks that responded to the survey thought that global bank gold holdings would increase.