Central Banks Are Now Buying Up 20 Percent of All the Gold Mined in the World
The Russian central bank buys out the entire Russian domestic gold production
Gold production nowadays stands at around 3,350 tons a year:
Gold mine output has flatlined over the last several years and that trend appears to be continuing in 2019. Gold production rose fractionally in 2018 by about 1% totaling 3,346.9 tons. That compared with 3,318.92 tons mined in 2017 — a modest 28-ton increase year-on-year. According to the World Gold Council’s Gold Demand Trends Q3 report, on a year-to-date basis, mine production ended the third quarter at 2,583 tons. That’s virtually identical to production levels at this point in 2018.
Of which the central banks now buy up 650 tons:
So far in 2019, central banks have purchased 547.5 tons of gold on a net basis That represents a 12% increase year-on-year. This continues a trend we saw through 2018. In total, the world’s central banks accumulated 651.5 tons of gold last year. The World Gold Council noted that 2018 marked the highest level of annual net central bank gold purchases since the suspension of dollar convertibility into gold in 1971, and the second-highest annual total on record.
Modern economists (witch doctors) tells us that gold is not money and it’s irrational to hold it. Yet 20 percent of the entire production is bought up by central bankers to simply sit in vaults.
Much of that is due to the Russian central bank which buys out the entire Russian annual gold production (of just under 300 tons), and accounts for more than 40% of all central bank purchases.