Monday, October 1, 2018

Poland joins the growing number of world central banks dumping dollar reserves for physical gold

While sentiment for gold by investors has fallen through the floor, and speculators in the paper market are short the metal at near record levels, it has not stopped central banks from slowly accumulating gold as a replacement for the dollar in their reserves.  And the newest central bank to join the myriad of nations swapping dollars for gold is that of Poland.

Poland is making a rare charge into gold. 
The country added about 9 metric tons to its bullion reserves in July and August as prices dropped, International Monetary Fund data show. That’s Poland’s biggest purchase since 1998 and among the largest additions by a European Union nation since then. 
The National Bank of Poland declined to comment on its reserves, but economists said gold’s recent drop to the lowest price in more than a year has helped make the metal more attractive.Bloomberg
Poland is also not the only EU central bank to either be buying, or demanding their gold brought back home from foreign vaults as both Germany and the Netherlands have done so over the past three years.

As more and more nations including the EU progress towards de-dollarization, something will need to replace dollar reserves that were most commonly held by central banks on their balance sheet.  And since the Euro currency is having its own problems, and the Yuan has yet to reach a critical mass in internationalization, the best alternative is that of gold, and Poland is rushing in to get their share before the next financial reset.


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