Central Banks Selling in November


Following net purchases in October, central banks returned to net selling in November. Global official reserves declined by 6.5t during the month. Like August and September, when central banks were also net sellers, this was the result of continued moderate buying being offset by a few sizeable sales.

Overall, central bank demand has become more variable in recent months, oscillating between net purchases and net sales. This marks a change from the consistent buying we have become used to from this sector of the market.

Despite recent net selling, central banks remain on course to finish 2020 as net purchasers, making it 11 consecutive years since they were last net sellers on an annual basis. —END

Austin Report Editor’s Comments: In the midst of the Covid 19 Pandemic Gold rose 24% in 2020. Many nations found their budgets stretched and sold Gold in November to offset Covid 19 costs. For these nations, Gold served exactly the same purpose it does in a private portfolio— to be available in the worst-case emergencies.

If you’re a private investor who owned Gold at the first of 2020, your Gold holdings increased by 24%. It might make sense to take some profits in the next few weeks while Gold is over $1,900 an ounce.