In addition to rising demand from hedge fund managers, central banks increased their gold demand 25% last quarter, according to the World Gold Council’s “Gold Demand Trends Q3 217 Report,” released last week. Global banks bought 111 metric tons of gold last quarter vs. 88.8 tons in the same quarter in 2016.
The leading gold buying central bank nations were: (1) The Russian Federation, buying 63 tons last quarter and 164 tons year-to-date, well ahead of the 129 tons bought in the first nine months of 2016; (2) The Central Bank of Turkey bought 30.4 tons of gold in the third quarter year, bringing its total holdings to 167.4 tons at the end of September. (3) Kazakhstan has added to its gold holdings every month for the last five years. Last quarter, Kazakhstan bought another 10.3 tons of gold. Other buyers were Qatar (3.1 tons), the Kyrgyz Republic (1.3 tons), Indonesia (1.2 tons) and Mongolia (0.4 tons).
Through the end of September, total gold demand in China this year rose more than 15%. Gold bar purchases soared more than 40%. Gold jewelry, which makes up most of Chinese demand, also rose. Global demand for gold bars and coins also rose, gaining 17% compared to the same quarter last year.
Major Fund Manager Ray Dalio is Buying MUCH MORE Gold
Every quarter, major hedge fund managers must declare their holdings by the middle of the following quarter – meaning November 15 for holdings as of September 30. From these filings, we learned last week that the most famous billionaire gold bug fund manager John Paulson held on to all his gold last quarter. He kept his holdings in SPDR Gold Trust steady at 4.36 million shares valued at $530 million. He also kept all his shares in various gold stocks. George Soros, however, has abandoned gold in 2017.
Another billionaire hedge fund manager, Ray Dalio, revealed that his Bridgewater fund more than tripled its holdings…