In Pakistan and many other countries we have this household tradition where every woman keeps their holdings in form of gold jewelry, it doesn’t matter if they wear them, and in most common cases we never ever see most of women ever wearing them. A deep old wisdom lies in this custom; argument for the orthodox custom is that gold always appreciate and it will be a safe contingency investment for next generations.
‘Yes’, a safe haven for next generations, stock markets can crash, crypto can end, monetary system or economic system can collapse but gold has always been there for centuries and will always be there.
The recent coronavirus pandemic has not only made countries around the world to take drastic measures to stabilize their economies but also shifted their focus to old safe haven i.e. gold. We look at now how different countries around the world have increased or decreased their gold reserves.
This is to note that the precious metal has been considered as the safest bet during crisis, as bullion can withstand political and economic crisis as compared to other metals, currencies & stocks. It is also considered more liquid and can easily be converted in cash whenever needed. Considering gold as best investment in crisis, central banks globally have added almost 650 tonnes of gold in their reserves in last one year. Prominently central banks of Turkey and Uzbekistan increased their gold reserves by 36.8 tonnes and 6.8 tonnes respectively on year to year basis as per data of IMF and World Gold Council. Turkey’s central bank also tops the list of gold buyers this year with total purchasing of 148 tonnes of gold since start of 2020.
This is the same reason gold rate have also shown a new high in last nine years. Gold rate surged up by $26 an ounce to almost $ 1,882 and has been maintaining its level above $1,800.
As per latest data of World Gold Council, gold reserves around the world are as follows:
- United States of America having 8,133 tonnes of gold making 79 percent of foreign reserves
- Russia with 2,299 tonnes of gold translating into 22.6 percent of its foreign reserves
- China having 1,948 tonnes of reserves
- India with 654 tonnes of gold reserves
- Turkey having total of 601 tonnes of gold reserves
- Uzbekistan with 338 tonnes of gold reserves
- Saudi Arabia with 323 tonnes of gold reserves
- UK with 310 tonnes
- Venezuela with 161 tonnes
- And Pakistan having 65 tonnes of gold reserves
Pakistan also has seen a major price hike in gold reaching Rs. 118,700 per tola on Last Friday.