Central bank buying could be the catalyst for $3000 gold
“[W]hat central banks are doing these days when it comes to purchasing gold is grossly underreported in the mainstream media. It doesn’t get reported much because the gold market is considered boring, not like hot technology stocks or cryptocurrencies. Central banks need gold as the world becomes more polarized and currencies get questioned. The yellow precious metal has a history of preserving wealth in times of currency devaluation and crisis. Central banks know this well. They hold a lot of currency in their reserves and will need a lot of gold to hedge against volatility. This will help gold prices get to $3,000 per ounce. Given what central banks did in the first quarter of 2022, my stance on gold is as bullish as ever.”
USAGOLD note: Just in the past week, three central banks have made major announcements on gold acquisitions. The Bank of Ghana said it would begin bulk purchases from local miners instead of exporting the metal. (Ghana is the world’s sixth-largest gold producer.) The Czech National Bank said it intends to “gradually” add 100 tonnes to its reserves. The Reserve Bank of India reported a 65-tonne open market purchase.