LONDON (Realist English). Globally, a quiet and confident stocking of gold continues. Central banks have been buying it for the fifth month in a row since the beginning of this year, and for the fourth year in a row, with a slight pause at the beginning of the “pandemic”. There is no end in sight to the trend.
The data is published by The World Gold Council, an industry public organization of the largest gold mining companies. In total, since the beginning of 2022, central banks have replenished stocks by more than 300 tons. In August, Turkey became the leader, ahead of India, which has been buying bullion for several years.
The purchasing gold cycle did not start yesterday. Financial elites faltered in 2021, loading 463 tons of gold to the world reserves. This was 82% more than in 2020. However, the premonition of catastrophe began even earlier. The record years for global gold purchases are 2018 and 2019. Demand in 2019 amounted to 650.3 tons, which is only slightly lower than net purchases of 656.2 tons in 2018. By the way, this was the second largest peak in annual purchases in 50 years.
According to the WGC, 2018 was marked by the highest level of annual net purchases of gold since the suspension of the convertibility of the dollar into gold in 1971 and the second largest annual total in the entire history of observations.
There is a fair judgment that in dark times people will be forced to exchange gold at a rate of 1:1 for kilograms of grain and kilowatt-hours of energy. The stagnation of the price may indicate the approach of such times. In such a period, “eat yourself your own gold.”
But there is an equally fair judgment based on the lessons of the real history. In the last two centuries, the Earth has been shaken by dozens of revolutions and wars, including two world wars. The nastier the times were, the higher the cost of the yellow metal to the printing press and virtual financial assets of any type. It is quite logical to expect that with the collapse of the global market pyramid, trillions of unsecured dollars and their paper clones from colonial financial systems will run into gold, rush into energy carriers. Like demons who asked to be allowed to move into a herd of pigs.
A large group of economists predicts the inevitable “hyper” around the world. There are a lot of trillions of money that need to be saved, but there is little gold and energy. This will spur the price increase. By the way, the price increase can also be judged on the approach of the conditional ” Zero hour” for the world economy on the scale of history. So far, there is a stagnation of the price.
We believe that the prospect of the first judgment is close to the scenario of a strategic nuclear conflict, with irreparable damage to the material foundations of human civilization. And the prospect of the second is more likely. People will continue to die for еру metal, even if the global financial pyramid collapses, and in its place they will begin to build exactly the same.
Gold is mined 0.5 g per earthling per year. That is, if you buy only 100 grams, you are buying a share of 200 people. And if only 10 of these 200 people also have the opportunity and want to buy? Then it will not suffice for everyone.