[I]t is significant that central banks are turning back to annual gold purchases in line with a century of practice between 1870 and 1970. This appears to be restoring gold as a central element of monetary management after four decades of attempted demonetization, according to reserve statistics compiled by the Official Monetary and Financial Institutions Forum, the financial research group.I have written several times in the EPJ Daily Alert that during the next major spike up in gold, it is going to be common to see gold climb on any given day by as much as $100 per ounce.
Annual net gold purchases of 350 tons a year by world central banks over the past eight years have returned to the 100-year average up to 1970 — reflecting gold’s renewed attractiveness as a safe-haven asset in an environment of uncertainty and low or negative interest rates....
The latest “Rebuilding” Period VII has been under way since the financial crisis in 2008. In these eight years, central banks in both developed and developing countries have shown a new fondness for gold, rebuilding its importance as a bedrock of most countries’ foreign reserves.
Central banks have been net bullion buyers every year since 2008, adding more than 2,800 tons or 9.4% to reserves. Developed countries (accounting for the lion’s share of total official holdings) have been conserving stocks, while developing countries led by China and Russia have been building them up.
This is the longest protracted spell of gold accruals since 1950-65, when central banks and treasuries acquired a net total of more than 7,000 tons during the economic recovery after the Second World War....there has been a big shift over the past 70 years in the distribution of gold away from former near-monopoly holder the U.S. Treasury towards European countries and, latterly, developing nations – symbolizing the growth of a multipolar world economy.