Central Banks Bullish on Gold. Will Investors Follow?
March 13, 2023
Watch Time 1:45 MIN
Could central banks be paving the way for gold investors?
Central banks purchased over 1,000 tons of gold in 2022. This is the second highest year of net gold purchases by central banks since 1950. And we do think investors could learn something from central banks.
The banks have been net buyers of gold for the past 13 years. So their commitment to gold is long term, they're not trying to “time the market”, they're buying and they continue to be net buyers over the past decade. And when surveyed and asked why they're holding gold and why they're accelerating their purchases of gold? The reasons are as a safe haven and as a portfolio diversifier.
So investors, more broadly, tend to look at gold as an asset of last resort but in fact we think it should be a core component and enjoy a permanent allocation in any portfolio. Investors can get exposure to gold via the metal itself, bullion, or through the gold equities.
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