Hoarding Gold: Gold and Banks

hoarding gold: Twenty years after central banks in the West dumped gold in what many saw as the end of the metal's role in the global monetary system, their counterparts in emerging countries are hoarding gold at rates not seen in over 50 years, according to Deutsche Welle. Central banks bought 145.5 tons of gold in the first quarter of 2019, an increase of 68% compared with last year and the strongest first quarter since 2013, according to the World Gold Council. As safe-haven investments climbed, gold broke the 1,430 mark for the first time since September 2013, with some analysts saying the 1,500 threshold was firmly in sight. In the past four quarters, these banks have hoarded over 715 tons of the precious metal the highest that the industry-led body has ever recorded. US President Donald Trump's weaponization of economic tools in pursuit of foreign policy breakthroughs is also prompting countries to look for alternatives to the dollar as the preferred repository for world savings. The central banks stepped up buying gold following the 2008-09 global financial crisis, as they looked to diversify their foreign exchange reserves and reduce their exposure to developments in the US. The pace of purchases has picked up over the past 18 months amid sluggish growth and global uncertainty caused by trade tensions. (news.financializer.com). As reported in the news.