Central Banks' Gold Purchases Highlight Long-Term Economic Trends

Qinbafrank posted on X that between 2023 and 2025, central banks worldwide are expected to collectively purchase 1,000 tons of gold annually. Recently, the Polish central bank completed a purchase of 150 tons, accounting for 15% of the average annual gold accumulation by central banks. This observation was made at the end of October, coinciding with a minor peak in gold prices. The discussion highlighted that while short-term adjustments occur, the long-term support for gold remains unchanged. The underlying logic for this support includes the irreversible trend of de-globalization due to geopolitical tensions, ongoing fiscal expansion, and rising deficits. In this context, gold serves as a hedge against currency devaluation and the accelerated move away from the U.S. dollar. The continuous trend of central banks accumulating gold indicates that strong purchasing power persists, reinforcing gold's position as a strategic asset in the long-term economic landscape.