The Hungarian National Bank has become the world’s 2nd biggest in the gold purchase market
Based on official data, the Hungarian National Bank bought 15 tonnes of gold in the third quarter of this year. That means Hungary has emerged to the 2nd position in the global gold purchase market. Furthermore, the Hungarian National Bank’s gold reserve grew to 110 tonnes, a historic high.
The Hungarian National Bank acquired lots of gold
According to Népszava, in Q3 2024, the Hungarian National Bank became the 2nd strongest player in the global gold purchase market by acquiring 15 tonnes of gold. Poland bought 42 tonnes, while India only had 13 tonnes. Thus, Hungary could precede New Delhi.
Krisfót Juhász, a manager responsible for purchasing investment gold at Conclude Investments Ltd, said the national bank’s acquisition means the rate of gold compared to the country’s FX reserves grew to 14%.
The price of gold gradually increased this year by 30%. The price of gold overcame the gap between USD 1000 and 2000 in just under 15 years, while it took less than 10 months to bridge the gap between USD 2000 and the current peak of almost USD 2800 reached at the end of October. Goldman Sachs believes the price will reach USD 3,000 by the end of next year. Currently, it is at USD 2,650 because of Trump’s victory. Mr Juhász expects that gold prices will not grow significantly because the Trump administration is a supporter of digital currencies like Bitcoin, which reached USD 100,000.
Gold price decreases due to Trump’s victory
Mr Juhász said emerging economies like Azerbaijan, India, Poland, and Singapore invest their saved money into gold acquisition.
In Hungary, people buy gold because of the weak forint. Mr Juhász said that the moment the price of one euro rose above 400, Hungarians started to store the precious metal to secure their savings. He said it had not been rare recently in Hungary to meet buyers who took multiple kilograms of gold home.
We detailed in THIS article that PM Orbán nominated his old ally, Finance Minister Mihály Varga the new governor of the National Bank of Hungary. György Matolcsy’s term will end in March. Mr Varga is an economist and has been an MP since 1990. During the first Orbán government (1998-2002), he served as a finance secretary.
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We should abandon the disastrous fiat currency concept and return to the gold standard. But, of course, vested interests are so far, wide, and strong that it would never be allowed.