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Why Are Central Banks Buying Gold Hand Over Fist?

By smaulgld follow smaulgld   2018 Aug 4, 11:15am 1,125 views   4 comments   watch   nsfw   quote   share

1   Onvacation   ignore (6)   2018 Aug 4, 11:46am     ↓ dislike (0)   quote   flag        

Currency can be printed. Gold must be mined.
2   HEYYOU   ignore (46)   2018 Aug 4, 4:18pm     ↓ dislike (0)   quote   flag        

Why would anyone want gold?
Fiat paper is the only thing of value.
3   everything   ignore (1)   2018 Aug 5, 10:45am     ↓ dislike (0)   quote   flag        

Been going on for years. Hedge against inflation OR expected inflation. I don't really call it buying because central bankers are also printers, they are acquiring gold, look how easy it is for them. This is "in their own words", why the bankers are buying gold.

They are all saying diversification mostly. Sometimes it's a race, China and Russia are tied, so they are creating artificial demand by competing to see who can make a bigger big stack.

Really though, they are not buying or acquiring, they are hoarding, hoarding gold has been going on ever since they started using gold as means for trade/barter/purchase.
4   anonymous   ignore (null)   2019 Feb 1, 1:36am     ↓ dislike (0)   quote   flag        

Central Banks Are on the Biggest Gold-Buying Spree in a Half Century

Central banks bought more bullion last year than anytime since 1971, when the U.S. ended the gold standard.

Governments added 651.5 tons of gold to their coffers in 2018, a 74 percent increase from the previous year, according to a report from the World Gold Council.

Russia, which is "de-dollarizing" its reserves, was the biggest buyer, followed by Turkey and Kazakhstan. Hungary also made a large purchase, citing gold’s lack of counterparty risk and role as a hedge against changes in the international finance system, the WGC said.

“Central banks chose to significantly increase their gold reserves, reinforcing the importance of gold as a reserve asset,” the WGC said.

Central banks are expected to acquire an additional 600 tons this year, according to the consulting firm Metals Focus Ltd. The buys, which will help the banks diversify their foreign-exchange assets in a time of extraordinary political volatility, signal a growing confidence in the metal’s value moving forward.

The banks "were not net buyers even a decade ago," said Juan Carlos Artigas, director of investment research at the WGC, in a telephone interview. "As their foreign reserves expand, they are increasingly diversifying away from pure dollar exposure."

Slowing global growth, a weaker U.S. dollar and a drive by central banks to expand the amount of gold they hold could be a winning trifecta for investors seeking a recovery in the metal’s price after its first annual loss in three years


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