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People are always interested in the price of gold. Investors look at the rise and fall in its price from the perspective of profit and loss, while jewelry buyers wait for the price to fall. At present, pressure was seen on gold prices when the central bank of China reduced the purchase of gold. At present, apart from China, the central banks of many other countries will probably refrain from buying gold in the short term.
These banks have been very aggressive in buying gold in the last two and a half years. In such a situation, everyone wants to know the answer to the question whether one should invest in gold or not, because in May, spot gold touched a record high of $ 2,449.89 an ounce, while currently its price is $ 2,449.89. 2 thousand 330 dollars an ounce.
Central Bank excited to buy gold!
It is natural for investors to be worried about this decline. But after a recent survey conducted by the World Gold Council i.e. WGC, many questions of investors have been answered. WGC's 2024 Central Bank Gold Reserve (CBGR) survey showed that 29 percent of central banks are keen to increase their gold reserves in the next 12 months. In last year's survey, 24 percent of the world's central banks were excited about increasing their gold reserves, while 25 percent in 2022, 21 percent in 2021, 20 percent in 2020 and 8 percent in 2019 were excited about gold for the next 1 year. In this WGC survey conducted since 2019, central banks have shown the most enthusiasm to buy gold this year.
The reason for buying gold has changed!
According to the WGC survey, central banks will continue to buy gold as macroeconomic factors such as geopolitical tensions and inflation will be more important for these banks than interest rates. Last year's survey showed that central banks buy gold due to historical importance. But in this year's survey, it slipped to fifth place and the biggest reason for this is gold's inflation-beating power. The second major reason for buying is the performance of this precious metal in times of crisis, while the third reason is gold's role in diversifying the portfolio and the fourth reason is gold being risk-free in case of default.
81% central banks will buy gold!
The views of banks on increasing gold reserves have also been mentioned in the same survey of the World Gold Council, according to which 81 percent of central banks believe that the total gold reserves of central banks may increase in the next 12 months. Whereas in the 2023 survey, 71 percent of the banks had expressed such hope. 61 percent in 2022, 52 percent in 2021, 75 percent in 2020 and 54 percent in 2019 have predicted an increase in gold reserves in the next 1 year. If we talk about gold purchases, according to the data of the World Gold Council, central banks around the world bought 1,037 tonnes of gold in 2023, which was the second largest purchase compared to 1,082 tonnes in 2022. In such a situation, it will be interesting to see whether gold buyers in 2024 will be able to break the record of the last 2 years or not.
