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 U.S. dollar at $23.98 per ounce.

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, the 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 China is among gold reserve giants like Germany, the U.S., Russia, Italy, and France, a number of smaller central banks have also been buying large quantities of gold. 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…