Gold: Rising central bank demand and de-dollarization – Rabobank

Rabobank’s RaboResearch Global Economics & Markets team highlights growing central bank interest in Gold as global insecurity rises and de-dollarization continues.

The report notes that central banks are repatriating Gold rather than storing it abroad and expect reserves to increase over the next five years. It also references a major Gold heist that could expose sensitive intelligence programs.

Central banks build Gold reserves

"And against that backdrop, the FT also notes that ‘The world is more dangerous. Why is risk cheaper?’, underlining that capital is piling into insurance because of high returns and low volatility (against our current backdrop!) which leaves some worried about mispricing."

"Traditionally, they don’t have to worry because central banks are there to save the day. But right now, those knights in shining armour have a lot of other things to worry about: like swords and armour. Does that still allow them to just “ease in our time”?"

"So does the Wall Street Journal reporting that ‘A $40m Gold Heist Risks Exposing CIA’s Top-Secret Spy Programs’; as the Financial Times notes central banks are repatriating gold as global insecurity rises rather than storing bullion in other countries; and the Nikkei Asia shares that central banks expect their gold reserves to continue to rise as de-dollarization continues, with 84% of related survey respondents seeing such holdings increasing in the next five years."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)