Central Banks' Unprecedented Gold Buying Signals Shift in Attitude and Motives
June 7
Good morning.
There have been many think pieces on Gold out there of late, lengthy pieces discussing the intersection of Central Bank buying, Dedollarization and BRICS behavior. These are all topics covered in GoldFix over the past year.
Lately more writers are taking note of the intersections described above and putting out their own takes on them. What is happening?
Macro analysts now see Gold and the changes gripping societal money on their radar and are writing about it. Most recently we synopsized a good one: Goehring & Rozencwajg's Gold Commentary.
While most Goldbugs have heard these perspectives before, it is very important that the word is spreading. People returning to their senses is a good thing.
We liked the R&G one because of its differentiation between the 1970s and now in terms of CB buying. We read another one entitled: Gold revaluation & the hidden motive behind central banks’ gold buying yesterday. It also was good.
It is quite long but worth it in that the author is focusing on the European logistics involving a potential Gold revaluation. you can read it here
We humbly suggest reading our 500 word summary below, then looking at the original for more detail, time permitting.
The key to all this might be understanding the rationale behind the EU’s revaluation play and then considering how that could affect US Fed policy. The Fed and the ECB are no longer close pals for sure.
Central Banks' Unprecedented Gold Buying Spree Signals Shift in Attitude and Motives
Introduction
Shift in Attitude
De-Dollarization
Gold as a Buffer for Losses
Potential Use of GRA
Implications for the Banking System
Conclusion
Introduction:
Central banks worldwide have been increasing their gold purchases, with a record-breaking 228 tonnes bought in the first quarter of this year alone. This trend follows a year of exceptional gold purchases in 2022, indicating a significant shift in central banks' historical attitude towards the precious metal.