Sirwin
Sirwin
Chin adds for tenth consecutive month for a total 155 tonnes of gold

Central Bank Gold Buying Spree Not Slowing Down


It's not a secret anymore that central banks around the world (except Canada's) have been on a roll for the last couple of years buying up huge amounts of gold. Reports are coming in that the gold buying spree has continued unabated through summer. I kind of have an idea of what's going on but first, let's have a look at who's buying and who's not.

Zero Hedge reports this morning that 'central bank gold buying continued hot in July'. According to latest data from the World Gold Council, 55 metric tonnes were purchased in July. While Turkey was a net seller of 160 tonnes total through March, April and May, they reverted back to being net buyers and added 11 tonnes in June and 17 tonnes in July. Turkey's currency was a mess in the spring and it's believed their net gold sales were used to prop up their currency. Their inflation forecast was recently revised to 65%. That's a scary number!

Poland added 22 tonnes, bringing their total to 71 tonnes after 4 consecutive months of gold purchases. Qatar added 3 tonnes while Singapore, which has been one of the biggest buyers of gold this year, added another 2 tonnes. Earlier in the year, the WGC had to revise their numbers because of Singapore's surprise gold purchases.

The Czech Republic, now known as Czechia also added 2 tonnes to their reserves while Lybia added a princely amount of 30 tonnes in the month of June. Although there is no confirmation yet, it is believed that Russia is also stockpiling gold in light of sanctions against them imposed by the USA after being locked out of SWIFT.

China's central bank has been on a roll for almost a year now with their gold purchasing. Kitco News published an article yesterday announcing that China bought 29 tonnes of gold in August alone, marking the tenth consecutive month of gold buying. This brings their year to date total to a heart pounding 155 tonnes. To put this in context, one tonne of gold amounts to 32,150.7 troy ounces. Multiply that number by 155 times and you get just under 5 million ounces. It is believed China is amassing gold to reduce exposure to the dollar.

South Africa hosted the BRICS+ in August and rumors spread wild they would announce some kind of commodity backed currency. That didn't happen but they did announce that in January 2024, BRICS would expand to include Iran, UAE, Saudi Arabia and a couple others to bring the total to 11 countries. What a lot of people don't realize is that the biggest oil producers are siding with BRICS instead of the G7 and includes half the world's population.

Remember when G7 was G20? Where did the other 13 countries go? It should be obvious to everyone by now that the world is re-aligning and this massive ongoing gold buying spree by the world's central banks is a clear sign that big changes are coming and that indeed, we are eventually headed back to some form of gold or commodity backed currencies.

In the first paragraph, I mentioned that I had an idea what was going on and here's what I'm thinking is happening. All of the world's unbacked currencies, along with the dollar are headed to zero purchasing power. In fact, the U.S. dollar has lost 99% of its purchasing power since its inception in 1913. All these banks know their fiat currencies are dying and fast. Why not scoop up as much valuable gold as possible with their worthless currencies before they go to zero? I certainly would!

While they're at it, why not build all those cities, bridges and highways too, along with the power lines, railroads and waterworks with all that worthless money? When everything crashes and all debts wiped out, all the buildings and bridges will still be standing. This is what I think is going on. Everything is being built up for free, literally, while at the same time, central banks amass huge amounts of gold, also for free because they know they're buying gold with worthless cash. Who's left holding the bag of dirt? Why, we the people, of course...

They're gearing up for something. In the meantime, they'll tell you everything's fine and there's nothing to worry about. If they're buying gold like mad, maybe we should too. Unfortunately, in most countries, gold is at historic record highs and most citizens cannot afford to buy even one ounce. At last check, it costs over $2,700 to buy one ounce of gold in Canada where I live.

There is an alternative and that's SILVER!

Spot Silver - Friday September 8, 2023

The massive 237 million ounce silver deficit hit in 2022 will continue into 2023. I expect to see reports early in 2024 stating the silver deficit has increased even higher. It is now believed the real ratio of silver to gold is closer to 7 to 1. Historically, it's been 15 to 1 on average. As of this morning, the silver / gold ratio prices in USD is way out of whack, thanks to shenanigans from the COMEX and LBMA...

Gold / silver ratio - Friday, September 8, 2023

It's just a matter of time now before silver shows its true colors. I'm also hearing rumors that big corporations that rely on silver to manufacture their electronics are going straight to the miners to secure their silver supplies. That would mean far less would end up in the hands of us little guys / gals. I strongly recommend getting your hands on some silver before time runs out, especially at these ridiculously suppressed prices. It's better to be weeks, months, years ahead of the game instead of being late by just one second. After that, you're out of the game.

Peace and love to everyone!

 

I'm now also on Substack where I will soon begin new podcasts as well as post extra material. 

Previous Posts:

Canada holds rates steady at 5%.

Why can't we all just get along?

When you witness a robbery in progress.

Oil prices in gold remarkably stable for last 70+ years.

Thief decides to rob wrong store.

Gold backed BRICS+ currency in the works?

Spent money is not saved money.

Tucker, Hunter and missing subs.

USA DEBT: $32 Trillion and counting...

San Francisco - Echoes of old Detroit

M2 money contraction + rate hike double lag effect

Silver's massive 237 million ounce deficit

Never before seen divergence between silver and gold.

 

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SweptOverNiagara
SweptOverNiagara

Name's Joe and I live in Ontario, Canada. I like writing on a wide variety of topics. I enjoy keeping track of markets, investing and commodities and the crypto sector. Also do some coding for web browsers.


The Brave New World
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