is adding gold to its reserves, which is substituted just for dollar. Since the beginning of the year, the central banks have purchased 159 tons of pure gold in total. The most gold – 71 tons - was purchased by Russia, and more than 60 tons by Turkey. It is questionable what will happen with the interest rates of American bonds when their greatest holders - China and Japan - start to get rid of them. If this happens, their interest rates will rapidly increase and it will be very difficult for the USA to pay them. The fact that China is looking for a way how make its foreign trade independent from dollar is well known. The so-called “gold juan” is used already now
in trading with Russia. It is a paradox that the introduction of the customs on Chinese goods by the USA can accelerate this process. The dollar may get stronger for a short time, but it may be fatally damaged in a long term.
the Swiss pension fund AHV/AVS announced that - instead of paper gold and energy commodities - it will start to transfer its assets to the physical gold. This is because it regards the physical gold as a safer instrument for protecting the savings of its clients against inflation and recession. At the first stage, the pension fund will purchase almost 20 tons of gold bricks. It is a paradox that this announcement raised fear of the Swiss precious metal refineries. This is because the fact that, if the similar measures are taken also by the other Swiss pension funds, they will not have enough gold for such purchases. Let us imagine what would happen with the price of gold, if the greatest pension fund in the world, the Japanse GPIF, intended to transfer only 5% of its assets, which is approximately 60 milliards dollars. At the present prices, it could purchase almost 1,500 tons, which is half of the yearly global mining output.
of gold to its territory in advance of one year than planned. The main reason for this haste are probably problems of the greatest German bank, Deutsche Bank. The Berlin government intends to calm investors who holds bonds of this bank in order to prevent them from selling the bonds on a massive scale. This is because the loss of the bank in 2017 reached almost half a milliard EUR, which did not make the investors feel assured. In addition, bankruptcy of such a bank could cause an unprecedented global crisis.
Chief Executive Officer of IBIS InGold®, a. s.