Uzbekistan Has Identified 97 Gold / Silver Deposits Plans To Keep a Significant Portion Of Output
Uzbekistan Has Identified 97 Gold / Silver Deposits Plans To Keep a Significant Portion Of Output by Rory for The Daily Coin
Another nation, in the sphere of Russia and China, is announcing they are going to build their gold reserves. This is on top of the fact that Russia and China are working on a variety of financial systems and trade deals with other nations throughout Eastern Europe and the Middle East. What next, a gold backed currency or gold backed international trade note?
How could anyone make a forward looking statement so precise as the central bank plans to buy 81.37 tonnes of gold when we are talking about something that is measured the way gold is measured? It sounds like there has been deal cut and Uzbekistan will either be making payments on the gold or have made some type of arrangement to acquire the gold as their monetary means allow. Either way, it sounds like the deal has been cut and it’s just a matter of transferring the funds to the authorities while the Central Bank of Uzbekistan possibly already has taken possession of the physical gold.
After last year’s unprecedented central-bank demand for gold, another nation is jumping into the marketplace to build its gold reserves over the next five years.
According to international media reports, Uzbekistan expects to increase its gold reserves to 430 tonnes between 2020 and 2024 as the country looks to develop its domestic gold deposits. The reports said that purchase could start this year as the central bank plans to buy 81.37 tonnes of gold.
The increase in gold reserves is part of the plan announced by the State Committee on Geology and Mineral Resources in its draft concept of the development of the geological industry of Uzbekistan for 2020-2024.
According to the development plan, the country will spend $230 million in exploration and development of new gold deposits. According to production numbers from 2017, Uzbekistan is the world’s ninth-largest gold producer and has the eighth-largest gold reserves.
The government’s geology department has identified 97 gold and silver deposits.
The government’s long-term plan would be a significant increase in its gold reserves. In its latest report, as of Jan. 1, the Central Bank of Uzbekistan said that is current gold reserves are valued at $14.64 billion.
Uzbekistan’s plan comes after central banks bought gold at the fastest pace since in 50 years, according to the 2018 data from the World Gold Council. According to the WGC, last year central banks bought 651.5 tonnes of gold.
If Uzbekistan meets its five-year target, the central bank’s reserves would be the twelfth largest in the world, just behind the European Central Bank’s official reserves of 504 tonnes. Source
Uzbekistan and Kazakhstan are both climbing the ladder of gold reserves and it sounds like Uzbekistan has the ways and means to not only meet their goals but blow past them in short order. If half of the already identified 97 deposits are gold and the nation has allocated $230 million for the project, why wouldn’t they get the gold first and develop the silver mines in tandem to building their monetary base with gold? If they are smart to begin these mining operations and keep a significant portion of the deposits, they are smart enough to understand that “gold is money”.