According to recent research by the World Gold Council (WGC), central banks believe that gold will play an important role in their reserves.
The result of the fourth annual central bank gold survey, which says that 21% of central banks expect to increase their gold reserves over the next year compared to 2020, was published by the WGC on Tuesday.
It was also noted that no central bank plans to sell gold this year compared to last year's survey.
This year, 56 central banks participated in the WGC survey, compared to last year, where only 51 banks participated.
According to this year's surveys, it is obvious that interest in gold has increased significantly, and this can be seen in the chart:
Inflation has become one of the investment considerations and will remain so in the coming years.
According to the WGC, central banks will remain net buyers of gold, although in smaller volumes than in the previous decade.
Despite the fact that central banks are looking to increase their foreign exchange reserves this year, the WGC noted that they are not sure about the global trend in terms of reserves according to research results.
WGC said that 52% of respondents believe that the gold reserves of global central banks will grow next year, compared to 75% last year.
For now, central banks remain net buyers of gold. However, the motivation for buying has changed this year. This was noted by the World Gold Council. The yield of gold during the crisis was the main reason among 79% of respondents who were not going to get rid of it.
This factor ranked fourth in 2019 and second in 2020.
Other reasons why central banks hold gold include its long-term value and its role as a portfolio diversifier.
