Polish gold reserves exceeded 300 tons in August – the National Bank of Poland officially announced. August was the fifth month in a row in which the central bank increased its gold reserves. Everything indicates that Polish reserves have exceeded British reserves.
The National Bank of Poland increased gold reserves to 10.108 million ounces at the end of August 2023 compared to 9.628 million ounces reported at the end of July – according to data published by the Polish central bank on Thursday. Polish gold reserves increased to 314.39 tons.
“This most likely gives Poland 17th position in the world. So just ahead of Great Britain, which reported having 310.3 tons of gold at the end of July – according to data from the International Monetary Fund,” reports Bankier.pl.
NBP increases gold reserves
August was the fifth month in a row in which the NBP increased its gold reserves. It started in April, when the central bank purchased less than 15 tons of the precious metal, which was the first significant increase in its reserves since 2019. In May, almost 20 tons were purchased, in June almost 14 tons, and in July over 22 tons.
In June 2019, the Central Bank demonstrated excellent market timing by purchasing one hundred tons of gold for approximately $1,350 per ounce. At the beginning of last year, the President of the National Bank of Poland, Adam Glapiński, declared that the Central Bank would purchase an additional 100 tons of gold. However, the data obtained by Bankier.pl indicated that at the end of November 2022, the NBP declared its possession of 7.352 million ounces of gold, which is the same as at the beginning of last year and slightly (i.e. 70,000 ounces) less than at the end of 2021. None NBP’s activity in this matter was surprising, as last year was marked by massive purchases of precious metals from other central banks. In 2022, they made the largest gold purchases in at least 55 years, increasing their reserves by 1,135.7 tonnes.
What is the purpose of gold purchases?
Foreign exchange reserves are intended primarily to ensure the financial stability of the economy. The money is invested in safe and liquid assets.
Gold brings income: since the beginning of this year, the price on world markets has increased by over 6%. It currently costs just over PLN 1.9 thousand. hole. per ounce. Not all major metals are doing equally well: silver fell by 2.2%. and platinum by 15%. The increase in gold prices is supported by the opinion that buying it is a way to protect against inflation.
Monetary gold held by the National Bank of Poland was worth USD 18.8 billion at the end of July. (PLN 75.3 billion). It accounted for 10.4 percent. official reserve assets of the central bank.