• According to the World Gold Council (WGC), central banks around the world have been buying up gold at the fastest rate in 55 years.
• China recently purchased 32 tons of gold, bringing the country’s gold reserves up to 63.67 million ounces.
• Wells Fargo’s head of real asset strategy believes silver could start outperforming gold in 2023, signaling a bull market in precious metals.
It has been a wild ride for the precious metals market in the last two months. With gold and silver prices both seeing substantial increases, many investors have been wondering just what is going on. According to the World Gold Council (WGC), the answer lies in central bank gold demand, which has been rising at the fastest rate in 55 years.
The People’s Republic of China has been a major contributor to this surge in gold purchases. China recently revealed that it had purchased 32 tons of gold, bringing its total gold reserves up to 63.67 million ounces, which is valued at $112 billion. This staggering amount is the sixth largest in the world, and it is a clear sign that the country is looking to secure its wealth through the purchase of gold.
The WGC data also shows that the current demand for gold by central banks is the highest it has been since 1967. This has been further supported by Wells Fargo’s head of real asset strategy, John LaForge, who believes that when silver begins to outperform gold, it is often a sign that a bull market in precious metals is just around the corner.
Overall, it appears that central banks around the world are taking advantage of the current gold market to secure their wealth. This is a trend that is expected to continue in the coming years, with many experts predicting that the demand for gold will only increase. In addition, the possibility that silver could start outperforming gold in 2023 is something to keep an eye on, as it could further drive up the prices of both metals. It remains to be seen just how this will all play out, but one thing is certain: the precious metals market is definitely one to watch in the coming months.