China hoards more gold as central banks move away from dollar holdings
“According to economists, China’s hoarding of the precious metal is its way of ensuring its rise as a superpower and as a safety measure in case of a worst-case scenario. The move is also its way of diversifying away from its US dollar holdings amid its ongoing trade conflict with the United States. Economists also predict that the trend will likely continue in the coming months if the geopolitical situation doesn’t get better.”
USAGOLD note: China’s gold policies are long-term supportive of demand – a prospect that weighs heavily in the physical market. This article reviews the strong demand for physical metal among central banks – a group private investors like it or not are likely to find themselves competing against in the years ahead. In previous bull markets private investors, funds and institutions pretty much had the market to themselves. Next time around with central banks in the mix, it could become a different story entirely. Central bank demand through May 2019 has been 247 tonnes according to the World Gold Council, but that number does not include the 100 tonnes in purchases reported by Poland’s central bank earlier this week.