Central Banks around the globe have been the biggest purchaser of <a href="https://www.cryptoknowmics.com/crypto/bitcoin-is-a-digital-gold-not-a-currency-for-transaction-says-marcus/">Gold</a> in 2019, surpassing the 50-year high record of 2018. A total of 668 tons of Gold have been bought by these central banks this year which is 17 tons more than 2018. Gold price is at an all-time high, and many believe the significant hoarding by central banks could be the reason behind it.

The gold rush among central banks also highlights the economic turmoil looming large; this year almost 37 central banks have made significant changes to their monetary policies, including repo and interest rate cuts. These substantial changes in the fiscal policies are often a result of rising inflation, lack of liquidity, and weakening economy.
<h2>Central Banks Around the Globe Are Seeing Gold As a Safe Haven</h2>
The ongoing gold rush is being seen as the diminishing value of the US Dollar in the international trade market. Russia is dumping the US Dollar for gold as a political move and protests against the US. Given the ongoing rate cuts, where some countries have even gone on to put negative interest rates, gold has become a real saviour. Gold is a great reserve, a safe haven asset and diversification tool.

The central bank of India increased its Gold limit by 40-tons for the first time in a decade, Poland's gold purchases surged by 25% from last year, Hungary purchased more gold in 2019 than in its recorded history. Different analysts have a different take on the reason behind the ongoing gold rush. Still, many believe the continuing economic turmoil, along with the stock market's bubble-like behaviour is one of the main reasons for the ongoing hoarding.

The stock market has shown big signs of being in a bubble phase, and analysts believe central banks are aware of the consequences when that bubble bursts. This year Nasdaq reached 9,000 points returning 36% on year to date which is extremely high from a stock market point of view. Bitcoin commentator Gabor Gurbacs believed flawed monetary policies of central banks are the sole reason behind the ongoing stock market bubble behaviour as well as a looming economic disaster. He explained,
<blockquote>"Central banks and other financial market occultists destroyed honest markets and valuations. Younger generations are deprived of the opportunity to participate at a reasonable price — Sandcastles can’t hold up forever."</blockquote>
<a href="https://www.cryptoknowmics.com/crypto/a-comprehensive-guide-for-bitcoin-and-blockchain/">Bitcoin</a> which was declared as a bubble in 2017 by many of these central banks around the globe are also preparing to launch their own <a href="https://www.cryptoknowmics.com/crypto/can-cbdc-undermine-the-decentralization/">CBDC</a> to bring in better cross-border remittance services. Apart from that, Bitcoin has seen a significant decline in its bubble-like behaviour, and a continuous decline in its volatility.

Central Banks Hoards Record-Breaking Amount of Gold in 2019

Central banks around the globe has have accumulated more gold in 2019 than the 50-year high of 2018 amid growing conerns of an economic turmoil.

An engineering graduate, Prashant focuses on UK and Indian markets. As a crypto-journalist, his interests lie in blockchain technology adoption across emerging economies.

Central Banks Hoards Record-Breaking Amount of Gold in 2019

Top Picks