Gold is back in power!

Gold is back in power...

                                                                            Gold is back in power, but this time the main buyers are the banks, which are trying to have a hedge against war-induced instability. In 2022, banks bought over 1000 tonnes of gold, a 152% increase on 2021.                                                    
Gold buying is at huge levels. Such a gold-buying frenzy was seen just after World War II in the 1950s. The most important players in gold buying are central banks, especially those in countries not aligned with Western policy.                                                                        
About banks.                                                                                                                      According to Le Monde specialists, the champion of purchases in 2022 is the Central Bank of Turkey, which has filled its vault with another 148 tonnes of gold.   
Also active are poorer countries, which see gold buying as a possible rescue in the event of a major financial crisis. One example is Egypt, which bought 47 tonnes of gold in 2022.                                         
The war is the reason...                                                                                The main reason for the gold fever is not inflation, but the war in Ukraine.  More than 40% of central banks surveyed cite geopolitical risks as the main reason, compared to just 23% in 2021, before the conflict in Ukraine broke out.                                                                  
In the Financial Times, Indian financier Ruchir Sharma highlights the desire of many nations, such as India and Brazil, to find alternatives to the dollar.                                                                                      According to the IMF, it accounts for just under 60% of global foreign exchange reserves held by central banks, compared with 20% for the euro and 2.7% for the Chinese yuan.                                 
The same financier says that "almost 30% of the world's countries are under US, European, Japanese or British sanctions, compared with just 10% in the 1990s. And the "Russian affair" has shown that these Western allies are also sanctioning bigger players. The refuge in gold could be one of the weapons of rebellion against the dollar," explained the Indian.

                                                                                      So, think about that and maybe share this with someone who need that!