Originally published on: September 02, 2024
Eager to Diversify:
Central banks worldwide have been ramping up their gold reserves to unprecedented levels in 2024, shifting towards more secure store of value assets in the midst of economic uncertainty.
Unprecedented Gold Rush:
According to a recent report by the Kobeissi Letter, global net gold purchases by central banks surged to a remarkable 483 tonnes in the first half of 2024, breaking previous records. This marked a 5% increase from the previous record set in 2023, with central banks acquiring 183 tonnes of gold in the second quarter alone, showcasing a 6% year-over-year increase.
Top Buyers Revealed:
Leading the pack in gold acquisitions were the National Bank of Poland, the Reserve Bank of India, and the Central Bank of Turkey during this period. Notably, the National Bank of Poland expressed its commitment to boosting its gold reserves, aiming for it to make up 20% of its overall reserves.
Shifting Trust:
Spencer Hakimian, founder of Tolou Capital Management, highlighted that countries like China, India, Russia, and Saudi Arabia are increasingly turning to gold as a more reliable and stable reserve asset amid diminishing trust in Western reserve assets. He commended gold as the ultimate neutral and non-volatile asset in such uncertain times.
Market Performance:
While gold has experienced a substantial 23% year-to-date surge, outperforming the S&P 500, Bitcoin remains a standout performer in 2024 with a remarkable 37% appreciation. Despite a slight dip from its all-time high in March, Bitcoin continues to outshine traditional assets.
Comparing the Trends:
Peter Schiff, a renowned gold advocate, dismissed Bitcoin’s performance, claiming that gains were short-lived and noting a decline after the launch of spot BTC exchange-traded funds in the US. Nevertheless, as gold soared to an all-time high of $2,525 per ounce, BTC maintained its lead over the precious metal this year.
Looking Ahead:
Despite gold’s resilience and central banks’ renewed interest in the asset, BTC’s consistent performance in 2024 showcases its growing prominence in the changing financial landscape.
Stay Updated:
For more insights into the evolving financial market, catch the latest updates in “Hodler’s Digest: Telegram CEO’s Legal Woes, OpenSea’s Regulatory Notice, and More.”
