Gold’s resurgence as a Policy Anchor
Gold is no longer just a portfolio afterthought. it’s becoming a key policy anchor for sovereign states. Central banks have accumulated 3,255 tonnes from 2022 to 2024, marking the strongest three-year period as the 1970s. This shift highlights a re-rating of monetary sovereignty, especially as paper markets show signs of fragility.
Sovereigns Drive Demand: central banks have been buying over 1,000 tonnes annually since 2022.China, Turkey, and Poland lead this trend, emphasizing domestic custody. Europe has also repatriated hundreds of tonnes to countries like germany and the Netherlands.
Supply Constraints: Global mine output has plateaued at around 3,661 tonnes in 2024. Refining bottlenecks and illicit flows (435 tonnes smuggled from Africa in 2022) further amplify scarcity. The average mine now takes 16-18 years from revelation to production.
Tokenization’s Promise: By the end of 2024, $1.5B in tokenized gold was recorded. This programmable metal offers transparency, accessibility, and resilience in a fragmented financial system.
Remonetization is growing through three forces: official-sector accumulation, structural supply constraints, and regulatory architecture that diverts flows into shadows. The Ubuntu Tribe’s Gold for All report aligns with these trends,offering insights frequently enough overlooked by investors and builders.
Central banks are voting with their vaults, prioritizing financial autonomy. Supply is limited by geology and time, while logistics and refining bottlenecks create monetary vulnerabilities. Stronger standards and better traceability could channel gold back into obvious markets.
Gold’s Resurgence in Modern Monetary Policy
Gold’s role in the financial system is evolving. The demand for assured delivery is growing, especially in regions like Shanghai, where premiums have soared. This trend highlights the importance of allocated custody and robust redemption systems. Policymakers and treasurers are increasingly valuing these features.
Monetary policy is adapting to these changes. Balance sheets now include gold as a strategic asset, especially for countries facing sanctions or currency volatility. Gold’s non-liability status makes it a valuable reserve. When central banks buy a quarter of annual gold demand, their behavior influences monetary policy as much as traditional bondholders.
Logistical challenges also impact monetary policy. Refinery bottlenecks and custody issues can cause regional price differences and affect funding costs. Authorities focusing only on headline prices may miss these underlying factors.
Tokenization is modernizing gold’s role. By the end of 2024, tokenized gold assets reached over $1.5 billion, doubling from the previous year. Tokenization enhances transparency and reduces settlement frictions while preserving gold’s monetary attributes. It also expands access for smaller investors.
For sovereigns, integrating gold into reserve policies can reduce risks. Institutions should treat gold as working capital, optimizing for delivery and interoperability. Households can build core reserves through transparent channels. The industry should focus on audit standards and reliable delivery to ensure compliance.
Monetary policy will continue to adapt to these realities. The return to gold-standard thinking reflects a world that values settlement over promises.
Ubuntu Group’s Founder Paves Way for African Entrepreneurs
Mamadou, a finance expert, has been breaking down financial barriers in Africa. With over 20 years of experience at KPMG, BNP Paribas, and IBM, he executed transactions worth $25 billion. He noticed that traditional capital markets often left Africa out of wealth creation.
Forbes named him one of the Top 10 Most influential Men in Africa. But Mamadou was already working on a solution. he started Ubuntu Group in 2015 to connect African entrepreneurs with global investments.
His big success came with Ubuntu Tribe. This platform makes it easy for people to invest in precious metals using digital gold tokens. It’s like owning gold,but in a digital form. The African Bankers Awards saw the value in this idea and named it a finalist in 2019.
Mamadou’s work shows how technology can change finance. It can help more people in Africa access wealth-building opportunities.
