Singapore’s central bank was the third-largest buyer of gold in the world for the first nine months of 2023, after its counterparts in China and Poland, according to the World Gold Council (WGC).
The Monetary Authority of Singapore (MAS) bought four tonnes of gold on regulated gold exchanges in 2023 Q3, bringing its total purchases so far in 2023 to 75 tonnes, the council said.
The People’s Bank of China was the largest buyer, having raised its reserves of the yellow metal by 78 tonnes during Q3.
Since the start of 2023, China’s central bank has increased its gold holdings by 181 tonnes to 2,192 tonnes, representing 4 per cent of its total reserves.
The National Bank of Poland also continued its buying spree in Q3, adding 57 tonnes to bring its gold accumulation to 105 tonnes so far in 2023.
“Central banks continue to value the benefits that gold can bring to their reserve portfolios – diversification, downside protection and liquidity,” said Mr Shaokai Fan, WGC’s head of Asia-Pacific excluding China and its global head of central banks.
“For Singaporeans, it means that their currency and economy have even more layers of protection against an uncertain world.”
As gold carries no credit or counterparty risks, it serves as a source of trust in a country and in all economic environments, making it one of the most crucial reserve assets worldwide, alongside government bonds.
WGC noted in its report on Q3 trends that the strength of gold buying by central banks exceeded its expectations, which suggested that increasing gold allocations is becoming an accepted prudential strategy.
The Straits Times
