Diversification and demand for liquid assets continued to be central priorities for central banks in the first three months of 2019. And for many of them, gold was the preferred asset.
Central banks bought 145.5 tonnes of gold between January and March 2019, an increase of 68% from 86.7 tonnes in the same period last year.
This was the largest acquisition of gold by central banks since 2013, according to figures released by the World Gold Council on May 2nd.
The jewelery industry helped lift demand for the yellow metal, up 1% - driven largely by India.
The sharp drop in gold prices in March coincided with the traditional wedding season in India, which increased gold purchases with Indian consumers buying 125 tonnes of gold jewelry.
The investment in gold bars and coins saw demand decline by 1% to 257.8 tonnes, with China and Japan contributing the most to this reduction, the figures reveal.
The demand for gold fell for use in electronics and LED lighting – down 3% to 79.3 tonnes compared to the same period last year.
Trade tensions were one of the factors that contributed to a slowdown in consumer electronics sales, with global economic worries also affecting the technology sector.
Portugal has not changed its gold reserves since 2006 and has the 14th largest stock in the world with the Bank of Portugal storing 382.5 tonnes of gold.
At the beginning of 2000, the Portuguese central bank held 606.7 tons of this precious metal, which it kept until the third quarter of 2002.
Between that time and the second quarter of 2006 it sold 224.2 tons. That is, it gave up 36.9% of its gold reserves in four years. Since then, it has not sold or bought.
One metric tonne of gold is worth around 36 million USD with Portugal currently holding €13.7 billion in gold reserves at the current price.
Portugal’s gold reserves now represent half of the total held in 1975.
