El Salvador is buying up physical gold bullion. But, why?

What’s happening:

  • El Salvador’s central bank has purchased an additional $50M USD of physical gold to hold directly as a strategic asset

By the numbers:‍

  • El Salvador’s central bank acquired 9,298 troy ounces of physical gold through their $50M USD purchase

Why it matters:‍

  • This is only the second purchase of gold that El Salvador’s central bank has made in the last three decades

Going deeper:‍

  • El Salvador has notably been accumulating both Bitcoin and gold to hold as an asset as part of their political ambitions to build long term diversification and financial stability
  • El Salvador now owns a total of roughly 67,403 troy ounces of physical gold after their most recent purchase