WGC: Official Gold Holdings Constitute 17% of Total Stocks

SEATTLE (Scrap Monster): The Market Primer report recently published by the World Gold Council (WGC) states that official gold holdings represent approximately 17% of the world’s total stock. Also, most of these holdings are owned by Europe and North American regions.

According to WGC, world’s central banks along with organizations such as the International Monetary Fund (IMF) and the Bank of International Settlements hold nearly 34,000 tonnes of gold reserves. The gold purchases by central banks have recorded significant surge during recent times, on account of several factors including escalated economic and political risks and low and negative interest rates.

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The Council noted that gold is one of the few assets that are universally permitted by central bank’s investment guidelines. Also, central banks shifted to net gold purchases in 2010. Over the past ten years, central banks and institutions have accounted for nearly 11% of the annual gold demand, WGC noted.

The WGC report states that gold has been the favourite of reserve managers across the globe, not only on account of its safety and liquidity features, but also due to the returns it has delivered. For instance, gold has provided an average annual return of 10% since 1971.