Groninger Krant

Central banks increase their purchases of gold due to inflation

Groningen – Central banks around the world have continued to buy gold relentlessly in recent years. This can be inferred from the balance sheets of central banks. Gold is mainly held as a reserve and has traditionally been an anchor of trust.

In 2018 and 2019, buy gold High point of central banks, but this year too many central banks are still investing heavily in physical gold, including De Nederlandsche Bank (DNB). The main reason is that the precious metal of economic security to build strong reserves of capital in times of financial uncertainty. According to the latest figures, DNB possessed more than 600 tons of gold at the end of 2019, equivalent to about 26.7 billion euros.

trust anchor

Today’s coins and banknotes are made of inexpensive materials. This was not the case before. Then coins were made of precious metals such as gold and silver. Who are today, for example, gold or sell silver He will always get a certain value in return. In other words, these precious metals have a fixed value. This is why gold was given the role of trusted anchor and never lost.

gold stock

Holland’s gold is stored in various locations. Some are located in the Netherlands, but most are located in other countries, such as the United States (US), United Kingdom (UK), and Canada. The Dutch job contains at least 15,000 gold bars, which represents 31 percent of the total gold stock in DNB. Another 31 percent is in the vaults of the US Federal Reserve in New York, known as the Federal Reserve Bank (FED).

See also  Van Linden and his associates are also suspected of money laundering

The other 38 percent of gold bullion is in vaults at the Central Bank of Canada in Ottawa and the Bank of England in London. Until 2020, Dutch gold was in the gold vault of DNB in ​​Amsterdam. But due to the renovation of this office, it was decided to move the inventory to the new location to be built in Zest. The new location – the DNB Cash Center – is expected to be ready in 2023. Until then, the gold will be temporarily stored in Harlem.

central banks

It is also said that other central banks have a lot of gold on their balance sheets, although this cannot always be fully verified. For example, the US Federal Reserve’s (FED) gold stock has not been verified by an outside party for years, and the balance sheets of Russian and Chinese banks may not be fully public. But while the exact numbers aren’t entirely clear in some cases, the reason to hold gold is: to provide an anchor of confidence in times of financial uncertainty.

Photo: oberaichwald / Pixabay

Leave a Reply

Your email address will not be published.