Sprott Sees Gold, Silver Gaining as 1,000-Tonne Central Bank Buying Reprices Bonds
Updated
Updated · Kitco NEWS · Jun 9
Sprott Sees Gold, Silver Gaining as 1,000-Tonne Central Bank Buying Reprices Bonds
3 articles · Updated · Kitco NEWS · Jun 9
Summary
Paul Wong said gold and silver remain in a bullish structural setup even after gold’s mid-March pullback, arguing the move looks like consolidation rather than a breakdown.
Bond markets are being repriced by persistent inflation, rising debt issuance and weaker fiscal credibility, with U.S. 30-year yields reaching levels last seen in 2007 and 2-year yields topping the Fed funds rate.
That leaves policymakers constrained: tighter policy risks fiscal and financial stress, while easier policy could entrench inflation and weaken currencies, reinforcing gold’s appeal as a store of value.
Central banks still underpin demand, with official purchases averaging more than 1,000 tonnes a year over four years and net buying hitting 244 tonnes in Q1 2026 despite Hormuz-related liquidity strains.
Silver strengthens the hard-asset case, Wong said, as the market has run a roughly 762 million-ounce cumulative deficit over six years, exceeding 1 billion ounces including ETF flows.
As central banks hoard gold over dollars, is the era of US financial supremacy quietly coming to an end?
With banks predicting record gold prices, what single event could derail this seemingly unstoppable rally?
Will AI's productivity boom arrive fast enough to counter the inflation pushing investors toward gold?
Global Central Banks Double Gold Purchases to Over 1,000 Tonnes Annually: Geopolitical Risks and the New Era of Reserve Management
Overview
Central banks around the world have dramatically increased their gold purchases in recent years, doubling their annual buying pace since 2022. This surge began after Russia’s invasion of Ukraine, with central banks acquiring over 1,000 tonnes of gold per year—up from about 500 tonnes previously. Last year alone, they bought 1,045 tonnes, making up about a fifth of global gold demand. This unprecedented accumulation highlights a major shift in reserve management, as central banks seek to diversify and protect their assets amid rising geopolitical risks and concerns over potential sanctions.