Ecuador Jumps Aboard Gold Acquisitions Train
Ecuador Jumps Aboard Gold Acquisitions Train by Rory for The Daily Coin
In 2018 the central bank acquisitions of gold amounted to the largest volume of gold added to the collective of central bank holdings since 1968. In the first half of 2019 there was a 12% increase, compared to 2018, in central bank gold acquisitions year over year. Where 2019 ends up will be known within the next few weeks. We’re guessing substantially higher than 2019.
We have seen a slew of central banks jump on the gold acquisitions train over the past two years. Nations like Poland, Turkey and Hungary that haven’t acquired an ounce of physical gold in decades suddenly awakened in 2018 to add gold to their reserves. This is to say nothing of the continued efforts by Russia, Kazakhstan and China. We have also seen Azerbaijan, India and Mongolia jump back into the gold market and ramp up gold holdings.
Now we see another nation, Ecuador, climb aboard the gold acquisitions train.
Ecuador’s central bank, Banco Central del Ecuador, has announced that it has recently added to the nation’s gold reserves as part of the state’s holdings, taking its total holdings up to $1 billion.
The South American country used an unnamed Swiss company to refine 4.98 tonnes of gold mined within the state, worth USD $235 million, which will be used for funding spending pledges in the future according to the General Manager of the BCE, Verónica Artola Jarrín.
Speaking to reporters, Ms Artola said that this was a national milestone due to it increasing Ecuador’s monetary gold reserves, recomposing the central bank’s balance sheet, sending a positive message to the international community, and strengthening the Dollarisation process.
The gold has been bought from small or artisanal miners within Ecuador – reported to be from anywhere between 100 and 320 different sources – with the total amount weighing in at 160,000 troy ounces of gold bullion.
The process has been ongoing since just prior to Ms Artola’s appointment in 2017 as the bank’s General Manager. $30 million worth of gold was acquired in 2016, $47 million in 2017, $90 million in 2018, and $52 million this year. Source
The fact that Ecuador has not reported additions to their gold reserves for the past two years speaks in volume to the reality that we really have no idea what central banks or anyone acquiring large amounts of physical gold. We at The Daily Coin are very keen to the changes in the gold market and this is the first we have heard of Ecuador acquiring gold in 2017 and 2018. Who else and how much more gold has been acquired but not has not been reported as of today?