Why Italy’s central bank holds gold bullion

Banca d’Italia/Statement/Undated

Repost from 12-11-2020

‘Gold is an excellent hedge against adversity. Its price tends to rise when operators perceive the level of risk to be high, for instance during military escalation or, more often, financial crisis, when financial instruments, especially high risk ones like shares, plummet in value but gold tends to rise in price. Incorporating gold into a financial portfolio is a way of hedging against high-risk scenarios, however unlikely.”

USAGOLD note:  Why do central banks hold gold? By and large, they hold it for the same reasons you and I do. Bank of Italy’s clearly stated rationale is worth a full review at the link ……

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