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Banks Boost Gold Holdings to Protect Against Geopolitical Risk

Derek Wolfe

Updated: December 29, 2022

Central banks largest gold holdings
Editor’s Note:

EDITOR'S NOTE: Still unsure about making a gold purchase to hedge against inflation or a deep recession? Central banks have been upping both their gold purchases and their gold repatriation efforts as a way to further diversify their FX reserve holdings. We understand that gold prices have been fickle, especially if you pay close attention to daily and weekly prices. But if you look at the monthlies to yearlies, you’ll notice that gold is currently at an all-time high. As a side note, it’s interesting to dwell on the notion that smart money insiders have an advantage over retail investors, most of whom form their opinions based on financial news and, possibly, other retail investors. When it comes to gold, insider information in the form of central bank purchases has been widely available to the public. So, does this mean that gold is about to take out its all-time highs? Read on.

Throughout 2022 there's been a theme of protecting assets against geopolitical risk.

Central banks have been buying gold at a record pace, while others have been repatriating their gold holdings to keep them safe from jurisdictional risk. A risk that took on new significance this year after seeing Russia get kicked out of the SWIFT system, while many of their assets were frozen.

It's almost as if the fears many gold and silver investors have had for years about a move away from the dollar and into hard assets have finally manifested. And that it's no longer a matter of what 'could' happen 'one day,' but rather what continues to occur before our eyes on an almost day to day basis.

So in today's show, I talk with Jay Martin, host of the Vancouver Resource Investment Conference, about his thoughts on what we witnessed in 2022 in the gold and silver markets, and some of the trends he expects in 2023 and the years going forward.

He talks about the reasons why central banks are taking active steps to increase and secure their gold holdings, the current environment for the mining sector, the concerns in the energy market, and how the investors and fund managers he speaks with on a daily basis are responding to the current conditions.

So to stay up to date on the resources markets as 2022 approaches its end, click to watch this video now!

Source: YouTube

 

Originally published by Chris Marcus at Gold-Eagle

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