Why Buy Gold?
1. Both the BRICS+ Alliance and Non-BRICS States Are Actively Purchasing and Stockpiling Record Amounts of Gold:
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Saudi Arabia: Analysts estimate Saudi Arabia has acquired 160 tonnes of gold since 2022.
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China: In 2023, China's central bank, the People's Bank of China (PBOC), bought 225 tons of gold, the largest amount of any central bank.
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India: The Reserve Bank of India (RBI) is repatriating 200 tonnes of gold from the Bank of England to domestic vaults for the first time in over a decade, highlighting a strategic move to enhance control over its gold reserves.
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Russia: On September 6, 2024, Russia ramped up its daily gold purchases by 700%.
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Poland: In Q2 and Q3 2024, Poland added 100 tonnes of gold to its reserves, cementing its position as the world’s largest buyer during that period.
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Singapore: The Monetary Authority of Singapore (MAS) purchased 75 tonnes of gold in 2023, making it the third-largest central bank buyer of gold globally, after China and Poland, according to the World Gold Council.
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United Arab Emirates: In May 2024, the UAE’s central bank expanded its gold reserves by 19.7% compared to May 2023, reaching AED 20.6 billion ($5.6 billion).
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Kazakhstan: In 2024, Kazakhstan's state gold reserves increased by 522 tons, as reported by Erlan Akbarov, Chairman of the Committee of Geology of the Kazakh Ministry of Industry and Construction.
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Turkey: The Central Bank of Turkey increased its gold reserves to 570 tonnes in early 2024, continuing its strong demand for gold as a hedge against inflation.
2. America is Quietly Transitioning Back to Gold Too:
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Gold & Silver Tax Exemptions: 45 U.S. states have removed some or all taxes on gold and silver purchases, with the remaining five states expected to reconsider in 2025.
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Surging Sales: Wells Fargo analysts estimate gold sales now generate $100 million to $200 million per month, a sharp acceleration since bullion became available at warehouse clubs in late 2023.
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Massive Gold Shipments: Nearly 400 metric tonnes of gold have been repatriated into the vaults of New York’s Comex commodity exchange, out of London, further tightening global supply.
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Institutional Gold Investments: The Ohio Police & Fire Pension Fund became one of the first to allocate 5% of its $16 billion portfolio to gold and silver, reflecting growing institutional demand.
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Gold’s Strong Performance: Gold was up 26% in 2024, outperforming the S&P 500, which had a historically strong performance appreciating by over 23%.