Portuguese gold reserves gain €2,7Bn
The increase in gold prices to a seven year high owing to investor jitters over a global economic slowdown has added a staggering €2,7Bn onto the value of Portugal’s gold reserves.
The 382,5 tonnes of gold in Bank of Portugal safes are worth more now than ever as America’s trade spat with China continues.
Investors have been switching to gold as a safe haven, the value of which has hit a high not seen since December 2012 in the depths of the financial crisis.
At the close of 2018 with gold trading at €1.121 per ounce, Portugal’s reserves were valued at €13.786 million euros. In six months it has gained 20% in value to €1.342,65 euros per ounce, which means that the same amount is currently worth over €16.512 million.
The gain of 2.725,43 million is down to renewed demand for precious metal. The latest dent in investor confidence happened with the devaluation of the yuan by China in a counter-attack against the US in ongoing trade wars.
Since the start of the year, both the trade war and an economic slowdown have hammered confidence in the financial markets.
The US has benefitted from the increase in gold prices which has reserves of over 8,000 tonnes of gold and is the world market leader in stockpiling the precious metal.
Other countries with solid reserves which stand to gain include Germany, Italy, France, Russia, China and Switzerland since their reserves vary between 1000-3000 tonnes. Portugal holds the 14th largest reserves of gold in the world.