Countries around the world have begun stockpiling Gold as fast as they can get it. In 2010, most central banks across the globe switched from being net sellers of gold to net buyers of gold. According to the World Gold Council (WGC), the last six months of 2015 was the greatest gold buying period ever recorded.
Why are so many countries buying gold at such a rapid pace?
There are many reasons. In the late 2000’s, we saw economic recessions hit many parts of the globe and it took many counties by surprise. Many major countries like China and Russia were looking for stability turned to Gold. China and Russia have outpaced most of the rest of the world in gold buying in the past decade, but the United States remains the largest holder of gold by a wide margin. Many people also believe that banks are buying gold as a hedge against their own policies.
So why should investors care if countries are buying gold?
This is extremely important because it shows how essential gold is to a country’s economic stability. Markets fluctuate, but gold has been historically stable and has performed at it’s best when the markets faltered. We’ve also seen global inflation, and countries know that stockpiling gold provides them a hedge against inflation. Countries know that holding gold gives them economic stability regardless of what happens in the markets.
Observing the rate at which countries are buying gold should be a wake up call to every investor. Gold has been positioned by many so-called financial experts as an “alternative investment,” but when countries bank a significant percentage of their economic holdings in gold, it proves precious metals are not an “alternative” but rather something every investor should have in their portfolio.
The same advantages all the major countries in the world see by holding gold apply to individual investors. Investing a part of your retirement account in a Gold IRA can give you stability in an unstable economic climate and a hedge against rising inflation.
Here are the top 10 countries with the most gold in 2018
|United States||1||8,133.5 tons|