Rua Gold Inc. (TSXV: RUA, OTC: NZAUF, WKN: H8E)
An Emerging Gold Explorer with Two Highly Prospective Land Packages in New Zealand’s historical gold fields.
According to the latest data from the World Gold Council (WGC), global central banks continue to steadily increase their gold holdings, with net purchases of 16 tons in March. The three largest buyers were the central banks of Turkey, India, and China, while the largest sellers were the central banks of Uzbekistan, Thailand, Jordan, and Germany.
The Central Bank of Turkey increased its gold reserves by 14 tons in March, with a net increase of over 30 tons in the first quarter. The country is currently experiencing high inflation, with a 69.8% rise in April. In the spring of 2023, Turkey sold 160 tons of gold, but resumed purchases in the third quarter, ending the year as a net seller. However, the World Gold Council (WGC) noted that last year’s significant gold sales in Turkey were a response to domestic market changes, and the country’s long-term gold strategy remains unchanged.
The Central Bank of India added 5 tons of gold to its reserves in March, with a net increase of over 18 tons in the first quarter. Since 2017, the central bank of India has consistently bought gold, increasing its gold holdings by over 260 tons during this period. India’s gold purchases are motivated by political and economic reasons, such as the declining “reliability” of the US dollar and a “significant decline” in confidence in US dollar assets. Other reasons for investing in gold include increased volatility in the foreign exchange market, rising US interest rates, and the motivation for central banks of economies to diversify their reserve assets.
China’s official gold reserves increased by 5 tons in March, with a net increase of over 27 tons in the first quarter. The People’s Bank of China has been increasing its gold holdings for 17 consecutive months, with official gold reserves reaching 2,262 tons. Since reporting gold purchase data in October 2022, China has added over 300 tons of gold, and from 2002 to 2019, gold reserves increased by 1,448 tons. However, China’s actual gold holdings may be higher than official data, with many analysts estimating that the “off-the-books” gold held by the State Administration of Foreign Exchange (SAFE) may reach several thousand tons.
In February of this year, the Central Bank of Kazakhstan resumed purchasing gold, with gold reserves increasing by 4 tons in March and over 16 tons in the first quarter. However, gold trading in Kazakhstan has been volatile.
Other countries whose central banks bought gold in March include:
In 2023, global central banks bought a net total of 1,037 tons of gold, just 45 tons less than the multi-decade record set in 2022, marking the second consecutive year of total gold reserves increasing by over 1,000 tons. Additionally, China was the largest buyer last year. Analysts at ANZ Bank recently stated that they expect the central bank gold-buying trend to continue for at least six years, based on factors including declining confidence in US fixed income assets and the rise of non-reserve currencies.
