Gold rush: Why are central banks buying at a record pace?

According to data from the World Gold Council, in the last three months, central banks around the world have acquired more than 148 tonnes of gold, valued at $ 5.820 billion, or 22 percent more than the same period last year. Last year.

The Bank of Russia was the one who bought the most: 92 tons of gold. Taking into account the 106 tonnes acquired in the first half of the year, Russia's gold reserves exceeded 2,036 tonnes, Its market value is about 78 000 million dollars.

The most active gold buyers in recent months have been Turkey and China, countries whose relations with the United States have deteriorated considerably in recent months.

In addition, Moscow, Ankara and Beijing have become the largest sellers of US government bonds. This year, the Russian central bank reduced its investments in US sovereign debt. almost eight times, reports RIA Novosti. Since the end of last year, Turkey has almost halved its share of US debt investments.

Since April, when Washington introduced the first tariffs on imports of Chinese products, Beijing has been steadily reducing the volume of US government bonds. who own

Imminent crisis

According to experts, economic considerations explain the latest trends. As the world approaches a new era of instability, the prospect of a global crisis is becoming more and more real and almost all scholars have confidence that the US economy and the dollar will be most affected by the impending cataclysms.

In mid-October, economist Ulf Lindahl, director of AG Bisset Associates, specializing in market research, announced that the dollar was about to collapse and that it was would depreciate in the next five years compared to the euro. 40%, according to Bloomberg.

According to several experts, investments in US assets currently carry risks. In the first place, it is the commercial war unleashed by Washington.

The Federal Reserve

The second most important risk factor is considered US Federal Reserve policy. According to investors, the amount of money available to invest will fall sharply and the yield on government bonds will increase, so that the stock funds will start to flow towards the federal values.

In addition, the cost of borrowing for businesses will increase, so more and more money will be spent on debt service and less on development. As a result, the activity of sellers on US stock exchanges will increase and buyers will falter, which will cause a rapid decline in prices.

Risky public debt

The top three risks for US investors also include the possibility of an economic slowdown in China, due to the combination of two factors: the trade war with Washington and a huge domestic debt, estimated at $ 7 trillion.

By the end of July, China had almost 1.2 trillion US government bonds. By publishing these documents on the market, Beijing will condemn the US economy to an unprecedented financial crisis.