Gold trades marginally to the upside still caught up in technical sell-off
Could central banks’ attitude toward gold more broadly pave the way for investors?

(USAGOLD – 2/16/2023) – Gold is trading marginally to the upside this morning in a market that looks to be still caught up in the technical selling-off that began in early February at the $1960 level. It is up $4 at $1841.50. Silver is down 5¢ at $21.67. Van Eck, the international investment firm, says that “most investors seem uninterested in gold until things get ugly” but believes central banks’ attitude toward the metal might change that way of thinking.

“Could the attitude of central banks towards gold be paving the way for investors more broadly?” it asks in an analysis posted at Seeking Alpha recently. “A track record of 13 years of consecutive net buying demonstrates that as a group these institutions are not trying to ‘time’ the gold market. Their commitment to gold appears to be long-term and based on gold’s key attributes as a safe haven and portfolio diversifier. We, too, believe that gold, rather than being viewed as an asset of last resort, should be considered a core component and enjoy a permanent allocation in any portfolio.”

Editor’s note: Some are surprised to learn that since the United States went off the gold standard in 1971, gold has outperformed stocks by a wide margin. Gold is up 4696% over the 52 years. Stocks are up 3829.5% (as of this morning).

Gold and the Dow Jones Industrial Average
(1971 to present)

Chart courtesy of TradingView.com • • • Click to enlarge