Central banks have been big buyers of gold for over 10 years. Here is why they do it.
“GraniteShares’ [Ryan] Giannotto said: ‘Oftentimes, central banks will purchase sovereign bonds or foreign currencies for their balance sheets, but gold is simply an alternative asset to accomplish the same goal – make their currencies credible in the eyes of global markets.'”
USAGOLD note: Also, gold plays the same role in a central bank’s asset structure that it does in private investment portfolios – as the ultimate store of value and asset of last resort. One aspect of the official sector gold mobilizations often overlooked in the discussion is the repatriation movement. Those that don’t have it want it. Those that already have it increasingly want it stored inside their own national borders and not on deposit elsewhere.
Repost from 8-16-2020