Published: 2021.04.27. WGC: Gold for Central Banks in Eastern Europe

WGC: Gold for Central Banks in Eastern Europe - Preview

Hungary's central bank is once again in the spotlight on the part of precious metals analysts. The fact is that in the past months he bought 63 tons of the yellow precious metal for the state reserves - this is a threefold increase. It is also worth recalling that in the second half of 2018, he increased the country's gold reserves by 10 times.
The central bank of Poland has also significantly increased the country's gold reserves. In the second half of 2018, he bought 25.7 tons of gold, and in the second quarter of 2019 another 100 tons.According to the WGC, this was the largest one-time gold purchase in the world from the Central Bank in the last ten years.
According to the WGC, the Central Bank of Serbia has been accumulating gold in its reserves since 2011. It turns out that every quarter, the gold reserves of this country grew by about 0.2 tons. But in 2019, purchases of precious metals rose sharply, amounting to 9.2 tons in the third quarter. Then, in the fourth quarter, another 3.5 tons were purchased. which led to a doubling of the share of gold in international reserves.
“Thanks to the purchases of gold from Poland and Hungary, Eastern Europe has become an important buyer of precious metals on the world gold market. This region accounted for 17% of all purchases of the yellow precious metal from the world central banks. Most likely, the Central Banks of the countries of Eastern Europe will continue to pursue a policy of increasing the gold reserves of their countries, ”the WGC report says.
As the head of the Polish Central Bank recently announced, his department plans to buy another 100 tons of yellow precious metal in the next few years for the international reserves of the state. Serbia will also gradually build up its reserves by buying small amounts of gold. Therefore, the role of Eastern Europe in the world gold market will only increase over the years. This point of view was voiced by analysts from the World Gold Council.