Recently, World Gold Council released Central bank gold statistics, October 2024. The October tally doubled that of the 12-month average with the RBI leading both y-t-d purchases and those reported during the month.
India added 27t in October, bringing its total gold purchases to 77t y-t-d. India’s y-t-d net buying represents a five-fold increase on its 2023 activity. Emerging market central banks continued to dominate the market with Turkey and Poland adding 72t and 69t y-t-d to their gold reserves respectively.
These three central banks alone account for 60% of total global net purchases reported this year. Other than India, several central banks reported net increases (of a tonne or more) to their gold reserves in October. The Central Bank of the Republic of Turkey added 17t, making October the 17th consecutive month of net purchases and the highest reported monthly figure on record since December 2023.
October’s figures have surpassed the quarterly total of Q2 and Q3. On a y-t-d basis Turkey added 72t, representing around 34% of its total reserves The National Bank of Poland recorded net buying of 8t during the month, its seventh consecutive month of net buying. On a y-t-d basis, Poland added 69t, making up 17% of its total reserves.
The NBP’s annual report2 highlights its commitment to accumulating gold, with the central bank targeting a 20% allocation as a percentage of its total official reserve assets,
1: The National Bank of Kazakhstan added 5t of gold to its reserves after five months of net selling. However, Kazakhstan remains a net seller y-t-d, down 4t in 2024.
2: The Czech National Bank (CNB) added 2t of gold, making October its 20th consecutive month of net buying. The CNB has accumulated 37t of gold over this period, lifting its total gold reserves to 49t.
3: Kyrgyzstan added 2t of gold to its reserves, bringing its y-t-d purchases close to 6t and making October the highest reported monthly net buying on record since September 2023.
4: Data made available by the Bank of Ghana shows that its gold reserves now amount to 28t. The country’s gold reserves have increased steadily since May 2023, when they stood at just under 9t. Ghana added a further 1t during the month.
Central bank demand remains robust, with y-t-d (reported and unreported) buying reaching 694t by Q3 2024 – comparable to levels seen in 2022. While rising gold prices appear to have inhibited some buying and prompted tactical sales over recent months, October’s rebound in reported activity signals continued interest from central banks to accumulate gold within their reserve portfolios.
This reaffirms the role gold plays as a strategic asset for central banks to manage risks and diversify reserves.
Heera Zhaveraat (HZ International) A Diamond, Watch and Jewellery Trade Promotion Magazine provide dealers and manufactures with the key analytical information they need to succeed in the luxury industry. Pricing, availability and market information in the Magazine provides a critical edge.
