World: Dozens of the world’s economic leaders participate in extreme monetary easing policy, and central banks have also been hoarding gold. The central banks accumulated over 668 tons in gold purchases this year, which is more than 2018 record numbers.

The key drivers in gold demand this year stemmed from central bank purchases and most of which were bought 390 tons during the first two quarters of 2019. 

Central Bank Gold purchases this year, 2019 have surpassed last year’s 50-year milestone

In the last few months of 2019, the economists have been warning of worldwide economic calamity. And, about 37 developed central banks have participated in significant monetary easing practices like large scale overnight repurchase agreement and slashing interest rates. If banks cut a nation’s interest rate or fuels the country’s private banks’ incentives, they haul as a weak economy, lack of liquidity, and rising inflation. Also, most people don’t know that central advisers are fiddling with the global economy; they’re also purchasing gold in mass quantity. 

Peter Schiff’s recent opinion, despite gold bug in the economy, Bitcoin (BTC) prices outnumbered gold purchases this year. Although, gold had an excellent year touching an all-time high sale value at USD 1,542 per ounce and gained more than 10% this year. The biggest reason for gold’s significant rise was due to central bank purchases.

In 2018, gold marked its 50-year record, as far as central bank demand for the precious metal is concerned. Records show that 2019 gold purchases are up 17 tons more than the 651.5 metric tons purchases the previous year. 

February 2019, The Reserve Bank of India increased buying by 40 tons, and the country hadn’t increased in over a decade. Poland increased gold purchases over a 25% rise year after year, with an increase of 25 tons. 

In 2019, Hungary bought more gold than it has in the last 30 years. Although, several market observants have different opinions on why the world’s central banks are stockpiling gold reserves. 

Investment Analyst, Sebastian Sienkiewicz believes its because gold is a reliable safe-haven asset. He further tweeted,

“Central Banks gold purchases are on track to set a 50-year high. Main reasons? It’s a safe-haven asset, reserves/portfolio effective diversification, gold’s ability to improve risk-adjusted returns, and its valuable collateral.”

Peter Lutrario, a Twitter user posted,

“ Gold is already becoming a growing portion of central banks’ reserves. While the dollar still predominates, official gold holdings are up, in part because of politics, as with Russia dumping dollars to protest the U.S.”

Germany drops limit to buy Gold anonymously while private and domestic demand for Gold raise hike

December 2nd, 2019: Matthew Turner, an independent commodity and former Macquarie Group analyst, explained in a private note to investors that despite slowing numbers towards the end of the year, the gold demand was invoked by central banks. Turner pointed out that China and Russia reduced their purchases slightly, which did impact data to a degree. 

The Analyst, Matthew Turner, said,

“Countries like Russia are trying to spur domestic producers to export their gold. On that note, China skipped out on purchasing gold during October. It is too soon to know whether October’s zero purchases marks another cessation of buying or is a temporary pause,”

He further added,

“one explanation could be the high price, which might make a case for switching into gold harder to explain. But it’s worth remembering that the pace of buying in 1H 2019 was unprecedented, and current rates are still quite positive.”

Despite Russia trying to spur gold export sales, countries like Germany have amended new regulations that stifle retail gold purchases. Regional reports show that from January 1, 2020, the limit to buy gold anonymously drops from € 10,000 to €2,000. In 2017, the limit to purchase gold anonymously in Germany was €15,000.

The Manoeuvred stock market is feasting like it’s 1999

December 26, 2019: Holger Zschaepitz tweeted,

“Nasdaq hits 9,000 for the first time in the year-end rally up to 36%, party like it’s 1999.”

Bitcoin commentator Gabor Gurbacs replied to Zschaepitz’s tweet,

“This is the case for Bitcoin and gold in one chart, Central banks and other financial market occultists destroyed honest markets and valuations. Younger generations are deprived of the opportunity to participate at a reasonable price — Sandcastles can’t hold up forever.”

The ongoing central banks’ current gold hoarding, the U.S, and global stock markets have been in a delicate bubble. 

World Gold Council’s research said,

“Central banks manage gold the same as other reserves, but it is often excluded from their portfolio optimization.”

This means, while these financial gains hand out lower rates, negative rates, and encourage borrowing. They are betting on gold against all the risks they created. The shell game will soon be up, and the general public may realize the central’s planner’s band-aids are severely depleted. The commoners are not privy to the reasons why central banks are hoarding gold, but people to think it might be because the current stock market rally will end badly, and soon.