By Admin 
Gold Reserves: Amidst the ever increasing prices of gold, everyone’s attraction towards it is increasing. Central banks around the world are also purchasing gold extensively and reserves are being increased. This is believed to be the largest stockpile expansion in decades. However, this step is not being taken just because there is going to be a shortage of gold or there is some kind of fear, but it is a strategic decision.
Why is the stock being increased?
At a time when geopolitical tensions and economic instability persist, gold is considered the safest option for investment. According to market experts, this rise in gold prices will continue next year also. According to Morgan Stanley, the price of gold may reach $ 4,900 per ounce in the year 2026. Goldman Sachs says that when traditional currencies fall, the prices of gold and Bitcoin go up rapidly. RBI is expected to purchase about 900 tonnes of gold in the year 2025, which is more than the average for the fourth consecutive year.
According to Manoranjan Sharma, Chief Economist of Informatics Ratings, this increase in gold purchasing is different from the traditional pattern. He says that much of the gold reserves are driven by de-dollarisation efforts, especially in emerging markets such as China, India, Russia, Turkey and many Middle Eastern countries.
Doubt on traditional currencies
Another reason is that according to the IMF’s COFER database, the US dollar still holds about 58 percent of global reserves, but its dominance is gradually decreasing. This dominance position of the dollar is now facing challenge not only for economic reasons but also for political reasons. Recent financial sanctions imposed on Russia and the possibility of similar measures being taken against other countries have made many governments hesitant to invest heavily in US assets.
On the contrary, gold is outside this entire system. It can be stored domestically, sold and bought globally, and is not bound by the policies of any one country. This is why gold has become particularly attractive for emerging economies, which want to protect themselves from the influence of Western monetary power.
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