The National Bank of Poland (NBP) became the largest gold buyer among central banks, along with India, in the second quarter of 2024, according to the World Gold Council. NBP purchased about 19 tons of precious metals during this period.<\/p>\n\n\n\n
Adam Glapinski, President of the National Bank of Poland, said earlier this year that the central bank's reserves %He said he planned to make 20 out of gold. Currently, gold is about the size of NBP \u2047 's reserves. %It makes up 14.7.<\/p>\n\n\n\n
At the end of the second quarter of this year, Poland's gold reserves rose to 377.4 tons, and bullion purchases, held predominantly in the Bank of England as of April this year, surpassed even the world's largest economies, \u2047 said Conotoxia market analyst Grzegorv Dr\u00f3\u017cd\u017c.<\/p>\n\n\n\n
In the second quarter of the year, the price of gold also reached a record high, surpassing $2,500 per ounce (\u20ac2,249.26).<\/p>\n\n\n\n
This has led to speculation as to whether gold is currently a good investment and why central banks have been rapidly increasing their gold reserves in recent times.<\/p>\n\n\n\n
Reasons for central banks to buy gold<\/strong><\/p>\n\n\n\n One of the main reasons central banks have recently accumulated more gold is that they want to diversify their reserves sufficiently to protect against macroeconomic uncertainties and geopolitical shocks.<\/p>\n\n\n\n When it comes to economic and geopolitical fluctuations, currencies and other asset prices can fluctuate, while gold is seen as a safe haven asset and a hedge against inflation.<\/p>\n\n\n\n The relatively stable performance of gold in times of crisis and its inflation protection properties are among the reasons why central banks prefer this metal. In addition, gold, which is considered an effective way to diversify central bank portfolios, has high liquidity and does not pose a default risk.<\/p>\n\n\n\n It is also less affected by policy risks and can be used as a valuable collateral and policy tool. In some cases, gold can also help countries facing international sanctions, such as Russia, avoid those sanctions. This encourages these countries to buy more gold and helps them maintain their liquidity when other means of financing are closed or difficult to access.<\/p>\n\n\n\n Why do central banks buy gold?<\/strong><\/p>\n\n\n\n Central banks are also buying more gold to reduce their dependence on currencies that dominate their countries globally, especially the U.S. dollar.<\/p>\n\n\n\n According to the World Gold Council, central banks' demand for gold reached 183 tons in the second quarter of the year. This is compared to last year. %An increase of 6 \u2047 , but on a quarterly basis %There was a drop of 39.<\/p>\n\n\n\n Net purchases in the first half of the year reached 483 tons, compared to the same period last year %It was five more.<\/p>\n\n\n\n Dr\u00f3\u017cd\u017c also added: \u2047 In the second quarter of 2024, global gold demand on an annual basis excluding over-the-counter (OTC) investments %It dropped 6 to 929 tons. The main reason for this decline is the rise in jewelry consumption in response to record high prices. \u2047 reduction. \u2047<\/p>\n\n\n\n \u2047 But when OTC investments are included, the total demand for gold is on an annual basis %4 increased to 1,258 tons and reached the highest level since 2000. A large part of this demand is for the purpose of preserving and diversifying their portfolios. %It came from central banks, which increased by 6. \u2047<\/p>\n\n\n\n In addition to the National Bank of Poland and the Central Bank of India, the Central Bank of the Republic of Turkey continued to add another 15 tons of gold to its reserves in the second quarter. Thus, the Central Bank of Turkey has purchased 45 tons of gold so far this year.<\/p>\n\n\n\n Central banks of Jordan, Qatar, Russia, Uzbekistan, Kyrgyzstan, Iraq and Czechia also made significant gold purchases in the second quarter.<\/p>\n\n\n\n On the other hand, the People's Bank of China (PBoC) significantly slowed the gold buying trend in the second quarter of the year.<\/p>\n\n\n\n Demand for gold in Poland increased after the COVID-19 pandemic and the Russia-Ukraine war. Many investors fear that Russia's invasion of Ukraine could spread to Poland and want to invest more gold to protect themselves against such a scenario.<\/p>\n\n\n\n In other parts of the world, stubbornly high inflation is driving people to gold, while other geopolitical shocks such as the Russia-Ukraine and Israel-Hamas wars are further fueling this trend.<\/p>\n\n\n\n In addition to gold, the National Bank of Poland announced that it has also invested in foreign stocks and corporate bonds with the help of exchange-traded funds (ETF \u2047 s) to diversify its reserves.<\/p>\n\n\n\n Factors affecting the gold market<\/strong><\/p>\n\n\n\n There are many factors that affect the gold market; These include U.S. dollar movements, real and expected inflation rates, and demand for gold jewelry. Central banks' purchases of gold can also have a significant impact on the prices of the metal.<\/p>\n\n\n\n Gold mining production can also have an impact on prices, but this is less obvious. For example, gold mining companies can increase gold prices if production costs increase or when they face problems such as strikes, environmental protests, and weather events.<\/p>\n\n\n\n Currently, a large part of the world's gold mining output comes from China, Australia, Russia, Canada and the United States.<\/p>\n\n\n\n Dr\u00f3\u017cd\u017c, \u2047 The gold market, like many markets, is driven by supply and demand. In the last few quarters, demand growth has become particularly pronounced, \u2047 said.<\/p>\n\n\n\n Moreover, the constant weakening of the dollar may indicate that gold may outperform other important assets in the short term. Conotoxia \u2047 's basic scenario predicts that gold prices could slow down with a correction by the end of the year, but remain above the $2,500 per ounce level. \u2047<\/p>","protected":false},"excerpt":{"rendered":" The president of the National Bank of Poland, Adam Glapinski, recently revealed that the central bank would continue to buy gold, and is aiming for the precious metal to make up 20% of the bank \u2047 s reserves.<\/p>","protected":false},"author":1,"featured_media":1933,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[323,284,374,258,281],"class_list":["post-1932","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-genel","tag-gold","tag-more","tag-other","tag-this","tag-year"],"_links":{"self":[{"href":"https:\/\/www.lojistiknakliye.com\/en\/wp-json\/wp\/v2\/posts\/1932","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.lojistiknakliye.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.lojistiknakliye.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.lojistiknakliye.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lojistiknakliye.com\/en\/wp-json\/wp\/v2\/comments?post=1932"}],"version-history":[{"count":0,"href":"https:\/\/www.lojistiknakliye.com\/en\/wp-json\/wp\/v2\/posts\/1932\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.lojistiknakliye.com\/en\/wp-json\/wp\/v2\/media\/1933"}],"wp:attachment":[{"href":"https:\/\/www.lojistiknakliye.com\/en\/wp-json\/wp\/v2\/media?parent=1932"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lojistiknakliye.com\/en\/wp-json\/wp\/v2\/categories?post=1932"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lojistiknakliye.com\/en\/wp-json\/wp\/v2\/tags?post=1932"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}