If you want to invest in gold, you may want to do it now because competition is tough.
Do you know who else is buying gold? Hungary. Yes, the country. Hungary’s Central Bank is buying gold along with many other central banks of other countries.
Hungary tripled its gold reserves in one of the biggest purchases by a central bank in decades.
The monetary authority raised its bullion holdings to 94.5 tons last month according to their emailed statement.
At the same time, the latest data from the World Gold Council showed global central banks were net buyers of gold in February, led by India, which bought 11.2 tons.
Central banks helped underpin gold prices for most of the last decade but flipped to net sellers in the third quarter of 2020 as some producing nations cashed in on surging prices driven by investment demand.
Now, with exchange-traded fund holdings of gold in a months-long contraction, the market is looking elsewhere for support.
And as nations look to safeguard their finances in the wake of the pandemic, it’s not just Hungary turning to gold.
Polish Central Bank Governor Adam Glapinski said last month the authority may buy at least 100 tons in the coming years to demonstrate the country’s economic strength.
Serbia has also been making small but steady purchases since the start of 2019.
According to the WGC data, on a monthly basis, Hungary’s purchase would be the biggest since June 2019, when Poland bought 94.9 tons.
But don’t panic. We got you covered.
If you want to invest in gold, silver, platinum, or palladium, Noble Gold will always have some for you. But don’t take that as a sign to delay investing in precious metals.
Remember that protecting your investments is critical and immediate and there is no better asset to do that than precious metals.