Central Bank Gold Demand Rose at the Fastest Pace in 55 Years, Analyst Says Silver Could Outperform Gold in 2023 – Bitcoin News


According to a myriad of reports, the People’s Republic of China has been buying hoards of gold during the last year. consequently, World Gold Council (WGC) statistics show the demand for gold by central banks has risen at the fastest pace in 55 years. Meanwhile, Wells Fargo’s head of real asset strategy, John LaForge, contends that when silver starts outperforming gold, it usually signals it is “closer to a bull market in precious metals versus the other way.”

The World’s Central Banks Are Hoarding Large Sums of Gold, China Recently Purchased 32 Tons of the Precious Metal

Precious metals like gold and silver are ending the year a lot higher in value than they were 56 days ago on Nov. 3, 2022. Close to two months ago, on that day, a troy ounce of .999 fine gold was trading for $1,629 per unit and today, prices are 11.48% higher at $1,816 per ounce. A troy ounce of .999 fine silver was trading for $19.45 per unit on Nov. 3, and it’s increased 23.29% higher against the US dollar at $23.98 per ounce.

China’s State Administration of Foreign Exchange detailed for the first time in three years that the country purchased 1.03 million ounces of fine gold in November. China is the sixth largest country in terms of gold reserves held with 63.67 million ounces of gold worth $112 billion.

World Gold Council (WGC) data shows that while there’s been a rise in retail demand, central banks are hoarding gold at an extremely fast pace. A number of reports citing WGC data show that the central banks’ current demand for gold has risen at the fastest pace since 1967. China recently disclosed that the country purchased 1.03 million ounces of fine gold or the equivalent of 32 tons of the precious metal. China’s State Administration of Foreign Exchange detailed the purchase cost the country around $1.8 billion.

China has a reported 63.67 million ounces of gold, which is worth roughly $112 billion. Adrian Ash, head of research at Bullionvault told Financial Times (FT) reporter Harry Dempsey that the central banks’ flight to gold may suggest “the geopolitical backdrop is one of mistrust, doubt, and uncertainty.” While there is gold among the giants of Germany, US, the quantities of Russia, Italy, and To single out a few specific examples, Turkey, Uzbekistan, and Qatar have accrued substantial sums of the precious metal in 2022.

Wells Fargo Real Asset Strategy Analyst Says Silver Is Signaling a Possible Precious Metals Bull Market Breakout

Wells Fargo’s head of real asset strategy, John LaForge, is looking at silver ahead of gold according to his recent commentary with Kitco News on Dec. 29. “I am a little more positive on silver now that we are back to $23. It is the high-beta play. Silver is showing signs that whatever weakness we see in gold, it is probably short-lived,” LaForge told Kitco’s Anna Golubova.

“When silver starts beating gold, it is closer to a bull market in precious metals versus the other way,” the Wells Fargo executive added. LaForge believes gold prices will be anywhere between $1,900 to $2,000 in 2023, and he insists it’s quite possible silver could outperform the yellow precious metal.

“Over a supercycle, which is 10+ years, percentage-wise, silver does better than gold,” LaForge remarked. “That’s what happened during the last cycle between 1999 and 2011. That is typical … You can sense gold wants to go higher next year. Gold had a rough two and a half years,” the Wells Fargo executive further elaborated.

“In the last couple of months, with all the talk about the Fed pivoting, gold started to perk up. Next year, both gold and silver will do well. Silver might do even better,” LaForge concluded. So far, with a 23.29% increase compared to gold’s 11.48% jump since Nov. 3, silver is doing a lot better than gold against the greenback. Platinum, too, has jumped a great deal, rising from $915 per ounce 56 days ago to today’s $1,051 per ounce.

Tags in this story

Central Banks, France, Germany, gold, Gold bars, Gold Buying, Gold Demand, Italy, John La Forge, kitco, Kitco News, platinum, precious metal, Precious Metals, qatar, Russia, silver, silver bars, Silver Outperforms Gold, Silver Price, supercycle, the US, Turkey, Uzbekistan, Wells Fargo, Wells Fargo analyst

What do you think about the central banks’ demand for gold in 2022? Let us know what you think about this subject in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols today emerging.




Image Credits: Shutterstock, Pixabay, Wiki Commons, Editorial photo credit: VladKK / Shutterstock.com

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.





Source link

Leave a Comment