Central banks are quietly ramping up gold purchases outside traditional financial markets, according to Lobo Tiggre, the Principal Analyst at Louis James.
What Happened: Speaking to Kitco News on Saturday, Tiggre warned that the scale of new gold acquisitions by central banks were significantly underreported. “What’s new is that central banks are buying gold directly from local miners, especially in Africa, Asia, and Latin America,” he says.
This method of accumulation bypasses the usual routes through the New York Federal Reserve or the London Bullion Market, allowing central banks to avoid using U.S. dollars or interacting with Western financial institutions.
Tiggre highlights this as the key reason behind the discrepancies in the reported and estimated gold purchases in recent …