Gold buyers binge on biggest volumes for 55 yearsCentral banks are scooping up gold
at the fastest pace since 1967, with analysts pinning
China and Russia as big buyers in an indication that some nations are keen to diversify their reserves away from the dollar.
Data compiled the World Gold Council, an industry-funded group, has shown
demand for the precious metal has outstripped any annual amount in the past 55 years. Last months estimates are also far larger than central banks official reported figures, sparking speculation in the industry over the identity of the buyers and their motivations.
The last time this level of buying was seen marked a historical turning point for the global monetary system. In 1967, European central banks bought massive volumes of gold from the US, leading to a run on the price and the collapse of the London Gold Pool of reserves.
That hastened the eventual demise of the Bretton Woods System that tied the value of the US dollar to the precious metal.Last month the WCG estimated the worlds official financial institutions have bought 673 tonnes. And in the third quarter alone central banks bought almost 400 tonnes of gold, the largest three-month binge since quarterly records began in 2000.
The message these central banks are sending by putting a larger share of their reserves in gold is that
they dont want to be reliant on the US dollar as their main reserve asset, Menke said.
Some in the industry speculate Middle Eastern governments are using fossil fuel export revenues to buy gold, most likely through sovereign wealth funds.
The world continues dumping US dollar, I've already talked about
India buying gold and many times about Iran accumulating gold over the past couple of years. Now we have evidence of the other Eastern powers buying large amounts of gold. Many other smaller countries that don't fall into the global geopolitics like Qatar, Turkey, Uzbekistan, some African countries, etc. are also accumulating more gold.
This is the New World Order that is forming in front of our eyes, the old Dollar standard is slowly but surely going away which is causing high inflation in US as all the unbacked dollars they'd printed all these years are being dumped on USA itself and even higher inflation is seen in any country that is importing US inflation like Europe. Experts suggest that if US wasn't exporting its inflation, the real US inflation would have been somewhere north of 450% and that's where it's headed as the dollar dumping continues.
I recently watched an analyst who suggested that
this is World War 3 which will be fought (at least for now) economically. The East vs. West as the East dumps US dollar that strains US economy. China suddenly lets loose COVID on the world (this past 2 weeks) that is already showing an increase in EU and US. Oil price ends the year with the 2nd straight annual gain and the general high energy prices among other things is slowly rendering EU useless as an economy and industrial power.
Although economy is not the only battlefield (we have energy, food and actual armed conflict between proxies) but it is affecting us the most. It is even affecting bitcoin price as it has successfully prevented its rise to higher ATH last year and even changed its bull trend and crashed the price below the previous (2017) ATH for the first time in bitcoin history.
With that said, 2023 outlook is already bad economically speaking.
How much of the points I raised do you agree with and how do you see 2023 specially when dollar dumping continues?