Make Kitco Your Homepage

Serbia joins gold buying spree with a 9-ton bullion purchase as it looks for safety

Kitco News

Serbia joins gold buying spree with a 9-ton bullion purchase as it looks for safety

Editor's Note: Get caught up in minutes with our speedy summary of today's must-read news stories and expert opinions that moved the precious metals and financial markets. Sign up here!

(Kitco News) Serbia’s central bank acquired nine tons of gold in October, following in the footsteps of many other central banks that have been boosting its gold reserves, including Russia, Hungary, and Poland.

The gold purchases were made after the country’s president Aleksandar Vucic suggested buying more gold back in May, according to central bank governor Jorgovanka Tabakovic, who is also a member of Vucic’s Progressive Party.

“We have completed gold purchase transactions and Serbia is safer today with 30.4 tons of gold worth around 1.3 billion euros ($1.4 billion),” Tabakovic told reporters last week.

The October purchase has raised Serbia’s gold reserves by 10%. There are no plans to buy more gold at this time, she added.

The purchase was worth $438 million at $1,503 an ounce, Tabakovic said.

Serbia joined the ranks of gold-buying central banks at the same time as China exited, with October data pointing to China’s central bank ending its consecutive 10-month gold buying spree. China’s gold reserves held steady at 62.64 million ounces in October, but since December, the central bank bought 105.8 tonnes worth of gold.

Analysts have warned that central bank gold purchases could slow for the rest of the year, but the World Gold Council (WGC) advises that it is the overall trend that’s important to pay attention to.

Central banks are on track to be net gold buyers for 10 consecutive years, WGC director of investment research Juan Carlos Artigas told Kitco News in a recent interview, adding that he doesn’t expect this trend to shift anytime soon.

“In these particular conditions, gold is well suited to be an integral component of foreign reserves,” Artigas said.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.