World Central Banks buying gold spree has been the longest since the 1950s and 1960s.
As a result, Official world gold reserves reached 1,170 million fine troy ounces, higher than just before US President Richard Nixon broke the US Dollar’s link to gold in 1971.
Got gold? pic.twitter.com/LR8adyEJrh
— Global Markets Investor (@GlobalMktObserv) June 28, 2024
- Record-Breaking Demand:
- Why Do Central Banks Buy Gold?
- Balancing Reserves: Central banks hold gold as part of their reserves to manage risk associated with currency holdings and promote stability during economic turbulence.
- Hedging Against Fiat Currencies: Gold acts as a hedge against the eroding purchasing power of fiat currencies (especially the US dollar) due to inflation.
- Portfolio Diversification: Gold tends to move inversely to the US dollar. When the dollar weakens, gold prices often rise, providing a buffer against volatility.
- Top Buyers:
