Do you want to know which countries have proportionally less reserves in proportion to their economies? United Kingdom, Brazil, Canada, Australia, Mexico, Indonesia, and Colombia.
Central Banks sold gold for the first time in eighteen months, reducing Bitcoin Trader their positions by 12.3 tons in August. This is equivalent to $750 million. At first glance, it may appear that there has been a change in strategy.
However, the figures are misleading as the Central Banks bought 393 tons in the first seven months of the year. As a result, they follow mostly buyers throughout 2019 and 2020.
The August figures were then distorted by a single seller, Uzbekistan. You may not know what Uzbekistan is, but it has a gold reserve similar to the United Kingdom, one of the world’s largest and most traditional economies.
Interestingly, some places above in the ranking are Kazakhstan, its neighbour. Both regions belonged to the former Soviet Union, and are among the 10 countries with the highest annual gold extraction.
Who was king doesn’t want to lose his majesty
Another interesting fact is that the countries with the largest gold reserves, proportional to their economies, are precisely those that have had strong currencies of their own in the past and have lost this position. Top this list are Germany, Italy, France, the Netherlands and Portugal.
In this sense, those economies that belonged to the Soviet Union are in a similar situation. In other words, those who have felt in their skin the effects of seeing their local currency emerge from a position of global dominance seek protection in gold.
Do you want to know which countries have proportionally less reserves proportional to their economies? United Kingdom, Brazil, Canada, Australia, Mexico, Indonesia, and Colombia.
Yes, Brazil has only 67.4 tons of gold, equivalent to about 4% of our reserves. The latest governments have chosen to keep almost everything in treasury bonds
Dollar (was) good, now no more
Over the last four decades the dollar has been put into circulation in more or less predictable ways. Thus, if we analyze the Federal Reserve data since 1981, we will find an average of 6.2% per year of dollars in the market.
This figure ranges from Treasury Bonds to bank deposits, CDBs, and cash. Although there is a certain relationship between cash in circulation and inflation, this is not necessarily true.
Thus, there is no point in the government stimulating the markets if there is no demand. The result? People and companies refinance their debts, or simply invest in gold, real estate, and shares.
One of the reasons for Bitcoin’s new boom cycle is precisely this, a scarce asset that is still far from its historical maximum. Little by little, more investors will realize this, and its reduced supply will result in price levels never before reached. Just wait and see!
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