Cheap gold bought
Admittedly, the headline reflects a snapshot and the Polish central bank will hardly want to realize its book profits. Nevertheless: In their home country, they are pleased about an obviously very good investment decision by Narodowy Bank Polski (NBP), which bought a total of 125.7 tons of gold in the period from 2018 to 2019. A post by the news portal Remix states that Poland invested $ 5 billion in the precious metal during this period, which corresponds to an average price of $ 39,600 per kilo or $ 1,234 per ounce. Poland has thus earned $ 1 billion in a short time.
1.6 billion book profit
Specifically: Today, these nearly 126 tons of gold (just over 4 million ounces) are worth $ 6.67 billion at a gold price of $ 1,650 an ounce. Yield: 33 percent. Not a bad deal for a defensive investment with built-in life insurance. In the summer of 2018, the NBP had increased its gold reserves for the first time since 1998. At that time, the low gold ounce was $ 1,176 / ounce. In July 2019, the NBP announced that it had already bought 100 tons of gold in the same year (gold reporter reported). And finally, large parts of the gold stored at the Bank of England were brought home in a secret campaign: 100 tons of gold for Poland: that’s how the transport went!
Rising gold reserves
The Polish gold reserves are currently estimated at 228.65 tons. And there were numerous other central banks that have bought large amounts of gold in the past two years to stabilize their currency reserves. These include Russia, Turkey, India, Argentina and Hungary. With their purchases, they contributed to increasing gold demand and certainly contributed to the strong rise in gold prices.