Park Avenue Numismatics
5084 Biscayne Blvd, Suite 105
Miami, FL 33137
Toll Free: 888-419-7136
Secure Private Ordering
We use the latest online security processing, so your order is safe & private. We DO NOT disclose any customer information to ANY third party company. Our customer privacy is our priority.
Over 30 Years Experience
Park Avenue has over 30 years experience buying and selling Rare Coin and Precious Metals. We have the knowledge and ability to provide our customers with the best products and services.
Central banks will keep buying gold as dollar sanctions shift long-term strategies on currency reserves -Yahoo! Finance
Demand for gold among global central banks will likely remain strong, even after a record year of purchases, according to UBS.
In 2022, central banks bought 1,078 metric tons, the highest annual demand for gold since record-keeping began in 1950 and more than double the 450 metric tons purchased in 2021, strategists said in note on Thursday.
And based on first-quarter numbers, central banks are on pace to buy 700 metric tons this year, UBS estimated, down from 2022 but still above the average of 500 metric tons since 2010.
"We think this trend of central bank buying is likely to continue amid heightened geopolitical risks and elevated inflation," UBS said. "In fact, the US decision to freeze Russian foreign exchange reserves in the aftermath of the war in Ukraine may have led to a long-term impact on the behavior of central banks."
The US dollar traditionally has been a mainstay of central bank reserves. But the recent surge in demand for gold has been seen as a sign of de-dollarization after the greenback was used to put financial pressure on Russia for its war on Ukraine.
Among the top central banks buying gold are those in countries that are seeking to displace the dollar's dominance in global finance or trying get around Western currency sanctions, namely China, Russia and India.