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China hoards 4% of the world’s gold reserves, while Australia acquires 100kg in just ten years

China hoards 4 of the world’s gold reserves while Australia acquires 100kg in just ten years
China hoards 4 of the world’s gold reserves while Australia acquires 100kg in just ten years

While gold bulls have been buoyed by rising inflation fears and global uncertainty, bullion prices have remained remarkably stable in the face of strong headwinds like surging US bond yields and a rampant US dollar. As Federal Reserve Chair Jerome Powell reiterates the central bank’s hawkish stance to bring inflation under control, questions swirl around gold’s performance in the coming months.

On one hand, ANZ economists forecast gold around $2,000 by year-end. On the other, personal finance author Richard Kiyosaki predicts $5,000 in gold within years. His forecasts come with an asterisk – as the son of a rich father, I remain poor and can’t verify the validity of his predictions. That said, gold historically serves as a portfolio hedge during economic upheaval, and with deeply uncertain times ahead, $5,000 isn’t inconceivable.

Global tensions, soaring prices and deregulated “greed and stupidity” fuel unrest. Markets grapple with a complex web of challenges like slowing Chinese growth and stubborn inflation-defying rate hikes. Risks are piling up fast, from deflation dangers to potential stagflation.

Amidst this turbulence, nations and investors are flocking to gold’s safe haven charm. Let’s examine who’s adding the most gold to their reserves:

China’s Gold Gluttony

China hoards more than any other nation, with holdings near 2,136 tonnes or around 4% of total global reserves. After steadily buying over 100 tonnes annually, the Chinese now sport record-high gold reserves and bullion premiums as the yuan falls. With its economic patchwork exposing cracks, Beijing seems to be diversifying from US bonds into bullion for security.

Hungary’s Headline-Grabbing Haul

Few have increased reserves like Hungary, up 2,967% from 2013 to over 94 tonnes now. This eye-popping haul reflects gold’s reliability insulating against inflation-racked pressures.

Poland and Ireland’s Impressive Increases

Poland holds 122% more gold than a decade ago, outpacing even neighbour Czechia. Ireland too added over 100% to its reserves in that time, buying nearly 4 tonnes in late 2021 alone. This diversification bolsters stability for uncertain days ahead.

Australia, an Outlier Down Under

At under 80 tonnes, Australia held fast despite being the second-largest bullion producer globally. The RBA deems gold less vital than others, unlike peers hoovering up bullion insurance nowadays. Still, we retain over 500% more reserves than Ireland for now.