Gold Reserves at Central Banks Likely to Keep Growing

Wayne Lin

10/29/2018 9:52:47 AM

Many central banks around the world have increased their Gold reserves in 2018, a trend that is likely to continue. Earlier this year, Poland and Hungary, two of the biggest economies in eastern Europe, made atypical Gold acquisitions. An article published by Bloomberg observed these purchases  took the market by surprise, leading many to ask if the two countries were signaling concern about the economic climate. Just like many private investors, central banks keep Gold reserves to diversify their country’s wealth. China, Kazakhstan and Russia have also made notable increases to their reserves this year, but these were the first substantial acquisitions by Hungary and Poland in more than 10 years. The report cites data from JPMorgan Chase & Co. that forecasts continued expansion of global Gold reserves, predicting that central banks will buy around 350 tons of bullion this year and another 300 tons in 2019.

Gold Prices Dip as Stocks Stabilize

Spot prices and futures for Gold saw minor declines during early trading Monday, as stock markets steadied. Even with the dip, Gold bullion is trading at the highest rate in several months as investors and central banks seek safety in Precious Metals. MarketWatch pointed out as of Monday morning, Gold is up 3.3 percent for October following six months of consecutive decline. Marios Hadjikyriacos, an analyst quoted in the article, still believes “The short-term picture remains bullish overall.” 

An increase in economic and financial uncertainty led to a recent selloff in global equities. These worries also gave Gold a boost above $1,200 per ounce as investors went after safe-haven assets. Analysts also pointed out in addition to Precious Metals, overall interest in physically backed financial products has increased. Silver, Platinum and Palladium prices were all up Monday morning.

Bitcoin Prices Stay Solid Following Exchange Shutdown in Canada

On Sunday, the Canadian cryptocurrency exchange MapleChange announced on Twitter it would be shutting down. This tweet revealed a bug in their software had opened the door for all 913 bitcoin owned by the company to be stolen. According to Forbes, at current rates, that is equal to $6 million. While this could have had an adverse effect on Bitcoin prices, exchange rates remained steady, a sign of stability in an unusually volatile market. MapleChange stated that a thorough investigation was underway, but later deleted all social media accounts and took their website offline.

At 10:51 a.m. (ET), the APMEX Gold and Silver spot prices were:

• Gold, $1,233.60 Down $2.80
• Silver, $14.74 Down $0.04
• Platinum, $843.00 Up $8.40
• Palladium, $1,116.40 Up $13.50

APMEX’s Account Managers now have extended hours Mondays through Thursdays and are here to serve you until 8 p.m. (ET)! Or call us Fridays until 6 p.m. (ET)! If you have any questions about Precious Metals investing or simply would prefer to place your order by telephone, we are here to help.