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Thailand adds 90 tonnes of gold to reserves

14 July 2021

Thailand has bought gold on a large scale in recent months, according to new figures from the central bank. In April, it added 43.5 tonnes of gold to its reserves, to buy another 47 tonnes in May. As a result, the total size of Thailand’s gold reserve increased by around 90 tonnes, from 154 tonnes to 244 tonnes. This purchase confirms that there is still a lot of interest in the precious metal among central banks.Thailand's central bank did not comment on the large-scale purchase, but IMF figures confirm that the country has indeed added substantial gold to its reserves. The gold purchases can be found in the weekly update of the Thai central bank's international reserves. The gold stock is displayed here in millions of dollars, but from this data it is easy to deduce that precious metal was added in April and May.

More central banks buy gold

Over the past decade, Russia, China and Kazakhstan have been the main buyers of gold, but in recent years it has mainly been several small countries that buy gold. Central banks around the world see gold as a safe haven in times of crisis and as a reserve that manages to maintain longer-term value. A recent round of inquiries by the World Gold Council showed that many central banks also hold gold stocks because the precious metal has no credit risk and political risk. Thailand joins an ever-increasing group of countries adding gold to its reserves with these large purchases in April and May. In fact, it was the largest gold purchase among central banks since Poland bought 100 tonnes of gold in the first half of 2019. Earlier this year, Hungary added more than 60 tonnes to its reserves. These two countries also now keep a much larger share of their gold reserves at home.