Kazakhstan Gold Reserves Set To Overtake U.K. Gold Reserves

Gold News
Kazakhstan Central Bank Gold Reseves Swell to 303 Tons.

The Central Bank of Kazakhstan has consistently been adding gold to her reserves. For the past 64 months, the Central Bank of Kazakhstan has added gold. Gold buying by central banks over the past two decades has been concentrated in the central banks of China, Russia and Kazakhstan. The gold buying of the People’s Bank of China and the Central Bank of Russia has been substantial enough to vault both of them into the top ten gold holding nations of the world. Gold buying by the National Bank of Kazakhstan over the past three years years has moved it from thirty-fifth place to seventeenth place among gold holding nations – just seven tons shy of the United Kingdom.

Global gold reserves top ten march 2018

Global gold reserves top 11-20 march 2018
Kazakhstan Central Bank gold buying has pushed it into the top twenty among gold holding nations.

Kazakhstan Gold Buying Streak

The National Bank of Kazakhstan added 40 tons of gold to her reserves in 2017 after adding 36 tons in 2016 and 23 tons in 2015. As a result of increasing gold reserves, gold as a percentage of reserves has risen from about 28% in 2015 to about 42% in 2017.

Kazakh gold reserves 2015 - 2018

Kazakhstan is a major producer of gold and has opted to retain some of its domestic mining production as central bank reserves.

Western Central Banks Hold or Sell Gold, While Eastern Central Banks Add Gold

Western central banks, it appears have gone all in on a debt based fiat currency system and have de emphasized gold as a reserve asset. The central banks of Kazakhstan, Russia, China and more recently Turkey appear to be hedging their bets and protecting their economies from an international debt crisis by bolstering their gold reserves.

The central banks that constitute the top ten gold holding nations, other than Russia and China, have not added any gold to their reserves over the past five years. Indeed, many have not added gold for over thirty years.

Switzerland, sold over 1,000 tons of gold from 2000-2007 driving gold as a percentage of foreign reserves from 40% to about 8%. Switzerland now holds 1,040 tons of gold.

The Bank of England sold about 400 tons of gold from 1999-2002. Gordon Brown, the United Kingdom Chancellor of the Exchequer, led the sale during a period of time when gold was at multi-year low. The period of time during which the UK sold its gold is often referred to as “Brown’s Bottom”. Gordon Brown later became the UK’s Prime Minister. The Bank of England is no longer in the top ten gold holding nations and holds only 301 tons of gold and ranks 17th.

The Central Bank of Canada sold off its remaining gold reserves in 2016 and no longer lists gold as a reserve asset.

China

The People’s Bank of China stopped reporting additional gold reserves in October 2016. The PBOC, however holds approximately 1843 tons of gold, the sixth largest central bank gold hoard in the world.

Chinese gold reserves 2009 - 2017

Russia

The Central Bank of Russia has added more gold the past three years than any other nation. The Central Bank of Russia added 224 tons of gold in 2017, 199 tons in 2016 and 208 tons in 2015. During the first two months of 2017 the Russian Central Bank added about 44 tons of gold to reserves.

Russian Gold Reserves June 2015 - February 2018
Russian gold reserves have increased by about 600 tons since June 2015.

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This article by BGASC is not, and should not be regarded as, investment advice or as a recommendation regarding any particular course of action.