Why Central Banks Are Hungry For Gold: 55-Year Record Smashed!

Central banks are buying gold like never Before and an incredible 55-year record Has been broken right what we are seeing Is not just a fear of inflation but a Fear of the dollar that is driving this So we have central banks buying over 1100 tons of gold in 2022 and that is 150 increase of 2021 and this buying Spree is not going to stop it's going to Continue well into 2023 this year now What's really interesting is that we can See an incredible accumulation of gold Since 2010 after the 2008 financial Crisis right the central planners have Been buying up tons of gold year after Year it's as if they know the currency They are printing he's in a good store Of value right but the buying in 2022 Has really kicked things into overdrive Which tells us that the very foundations Of money are being shaken you know even At the average price of 1800 central Banks they are buying it like it's going Out of style because if you truly look At state of the world today tomorrow is Not guaranteed guys everything is on Fire and I think that central banks are Starting to realize that the current Currency life cycle which is the dollar Is coming to an end and the Fallout is Going to be very painful so there are Three factors that are driving the gold Price at each of them are getting worse Now the first is inflation right yes I

Know December CPI report shows that Inflation dropping to 6.5 but it is Still a clear and present danger in the Long run nothing has been solved and Coming back down to the promised land of Two percent is not going to happen in 2023 and the second is the chaos that's Just going on in the world right we have Extreme geopolitical risk all the way up Here guys we just need to look at the Conflict in Ukraine alone that alone Might spill into a wider war and Countries they are afraid they are Afraid of sanctions they're afraid of Getting dragged into the conflict and They are afraid of getting blamed for Associating with Russia or China right And this sphere is being translated into Gold buying is the classic fair trade And goal represents safety but the most Interesting thing is a potential goal Evaluation right we know bricks Especially China speaking bull moves on The wall stage to undermine the US Dollar and we need to realize that China Announcing and increasing their goal Results after four long years isn't an Accident right they are telling the World that hey we are back to buy and go Publicly we might have a grand plan that Involves goals and actions always betray Intentions and this shift towards goal Is only what the banks are allowing us To see right God knows how much of the

Books buying is going on especially in Russia and China but let's talk about Inflation I think by now we are all Experts in inflation I get hammered Every time I buy groceries and prices Always seem to go up and never to come Down right and I really believe this Talk about moving past Peak inflation to Be very ridiculous inflation is still Here and purchasing power is still being Destroyed and we just need to look at Turkey there's a big reason why turkey Is the biggest buyer of gold in 2022 People are panicking on the streets of Istanbul inflation has gone out of Control in the country hitting a peak of 85 percent in 2022 and that means prices Were almost doubling in a year and That's why everyone in Turkey is turning To Gold turkey's Central Bank bought the Most gold in 2022 stock 148 tons for Grand total of 542. they essentially Increased their goal reserves by almost 40 percent in just a year but that's Just the bank guys the people on the Street they are also buying with Q4 Jewelry demand jumping by 32 percent but Let's pay attention to this part despite The rise in local gold price doing Q4 Sorry consumer inflation brought the Investment motive to the fall and this Tells us that people in Turkey are Panicking and they are left with no Choice they know that even though School

Prices are going up they still have to Buy and I want us to really understand How this situation could always play out Anywhere in the world maybe not to the Extent of 85 inflation I get it but even With just a five percent inflation rate Within five years a quarter of your Purchasing power is gone and right now The Federal Reserve is slowing down its Rate hikes with just a quarter percent Increase right in the latest meeting and Sooner or later they might have to pause And reverse costs maybe it will be in 2023 or 2024 but once that happens guys We can expect inflation to pick up a Game right companies will start to Borrow cheap money once again plus People will start spending and Speculating in the markets and let's Also not forget the tens of billions of Dollars being poured into Ukraine all This talk of sending tanks the Pentagon Increasing artillery production and the Additional 2.5 billion dollars in 80 Ukraine he's just insane and this is Going to beat up the prices of Commodities and by extent attention keep Inflation high right so just remember That all these two tsunamis full of cash Are going to hit her sooner or later the Time of the current inflation wave is Receding but at least two more waves are Building on the horizon right central Banks they're beginning to realize this

That the world Reserve currency isn't Being properly managed and maybe holding More gold is the smarter choice but What's really interesting is the big Gold producers themselves are not just Wrapping up production they are also Stockpiling more of their own gold and We can see producers being net buyers of Gold with uh Pakistan turkey and China Leading the buying spree and this really Begs the question right why are these Goal producing countries buying up their Own Supply now in turkey's case it's Really simple their top Imports were oil And gold and to import them right you Need dollars which is costly to acquire For turkey the lira is down almost 30 Percent to the dollar so they can't keep Importing goal using dollars and that's Why turkey they are increasing Production to meet their local demand From the central bank and the people on The street right but China is a whole Different animal they increase gold Production by 13 last year increasing by 43 tons and this is when China's already The biggest producer in the world and They are draining the west of their goal Importing 524 tons from Switzerland Right driving Imports to a four-year High and we know China is a black hole For gold so where's all this additional Supply going is it just for the local Chinese people or is the Central Bank

Also stockpiling as well and if we look At the upcoming discussion at the breaks 2023 Summit a big topic will be about Creating a new common currency and we've Talked about this before whether the Currency will be based on a basket of Currencies like the Yuan or the rupee or Whether it will be backed by physical Gold right and if a new currency is Somehow backed by go then you want to Hold more of it you want a whole more of The physical metal yourself because if a Currency is go back that would mean gold Is back as a medium of exchange for Trade right so all the stockpiling of Gold could also be countries hedging Themselves just in case it returns as a Trading unit if gold is going to return As money and a means of payment they Obviously want to benefit and not ship All their wealth overseas but let's dig Deeper into all these Central Bank Buying and you quickly realize something Very funny only one side of the world Seems to be stockpiling gold and we are Talking about the global South and Asia China has officially resumed they are Buying turkey stockpiling and India also Added 33 tons in 2022 the Middle East Was also an active buyer with Egypt Qatar Iraq and the UAE all buying gold Last year and this tells us that the U.S Sanctions on Russia have instilled a lot Of fear in these countries right

Remember that in 2022 because the Fed Was hiking rates the value of U.S Treasuries was crashing as use went up Right 2022 was a horrible year for U.S Bonds and after Russia's results were Frozen countries were terrified of their Own money Vanishing so exiting U.S bonds Empowering the money to Gold really made A lot of sense but if we look at the Treasury data with the exception of Japan many G7 and EU countries like the UK Belgium and Canada were actually Increasing their treasury Holdings last Year they doubled down harder on U.S Bonds even though the values were going Down and this clearly demonstrates how The world is effectively splitting into Two even when it comes to countries Where they store their National reserves The West is all in with a dollar Denominated assets and Fiat instruments While the Middle East and Asia they're Diversifying their Holdings with gold They want to guard their wealth not just From inflation right but from the threat Of sanctions that's growing day by day Even in the IMF working paper they have Admitted that sanctions are a key driver Of why central banks are flocking to Gold and according to them the Imposition of financial sanctions by the United States United Kingdom EU and Japan is associated with an increase in The share of Central Bank Reserves held

In the form of gold and we can also see That sanctions actually make up a Significant reason why Emerging Markets Are putting their money to Gold here's The main reason is of course inflation And a rising dollar right but the fear Of getting your money Frozen is also Clear and present and I don't think this Fear is going to stop guys things are Getting worse especially on the Eastern Front Western tanks are about to roll Into Ukraine right and tensions are Building between the U.S and China again We have an American four-star general Predicting a war between the United States and China in 2025 and we don't Know if this is some fear-mongering or If he has some special intelligence Right behind the scenes and according to China this is reckless and provocative It is talking the Flames of war and Antagonizing U.S China relations even Further and that's why go guys is above 1900 today there's just so much chaos Going on and let's realize that between China and the US trading relations Either record high business has never Been better Traders reach a record 760 Billion dollars in 2022 so just imagine If this trade was to get interrupted Because of a war we'll have a supply Chain disaster so big he'll make the Shortages from the Ukraine conflict look Like a joke right oil will probably

Shoot up above 120 and inflation will Skyrocket once again that's why the more Warmongering we have the more countries Are going to flock towards goal right if War between China and the US really Happens then countries will be forced to Choose again who they support and if all You hold are US dollars or dollar Denominated assets you are leaving Yourself open to sanctions if you Misbehave so I really hope this pains The risk coming up in the next few years Will continue to see Eastern countries By gold because they need to diversify Their assets while the West especially America can't stockpile gold they have Trapped themselves with the dollar System we have the Federal Reserve Itself stating that the U.S will never Go back to the gold standard they have a Lot of weird points that don't make Sense but let's focus on a big Geopolitical reason and according to the Fact the U.S mines a lot of gold but we Are not the biggest producer the biggest Suppliers of gold would have more Control over a monetary policy and That's why America can't increase their Gold reserves they don't want the Biggest producers which are Russia and China to have control because if the U.S Buys gold they'll be as good as telling The whole world that the dollar is in Trouble you'll be announcing that gold

Is real money and suddenly the power Will flow towards the biggest coal Producers in the world right so really Don't expect the West to be Big Goal Buyers they have to defend the dollar System at all costs gold is essentially The enemy of the dollar but let's talk About us guys I think whether you're in America or whether you're in Asia we can All agree that inflation won't end it Doesn't matter if it's two percent or Twenty percent it's still inflation Right the modern Financial system is Trapped in this endless cycle of Boom Members Plus now you can sprinkle little Chaos and wall on top of this Sunday Right and this tells me that deficit Spending to fund the war is far from Over and once power gets the official Inflation numbers down right he will Again drop rates to stimulate the Economy the moral hazard will be back to The races boring will resume and prices Will start to shoot up across the board Again guys so inflation is a feature of The system and purchasing power is gonna Evaporate it's just a matter of time and It's just a matter of how fast or slow It will burn away right now I'm not Saying that gold will be the best trade In 2033 if a recession really hits every Asset class including goal will be under Pressure sure gold could crash by 20 or Even 30 percent if a financial crisis

Hits but if that happens it'll be the First thing on my shopping list so let Me know what you think in the comments Below well 2023 be a good year for gold Will central banks continue moving away From the dollar let me know in the Comments below stay safe be sure to Smash the like button and subscribe as We navigate through these crazy times