As can be seen in the graph, the world’s central banks were sellers of gold up until the 2008 World Financial Crisis (WFC). After which, they became strong buyers, with the last six quarters seeing significant buying.
2019 was a solid year for precious metals, with gold up $231 (18.5%) and silver up $2.40 (16.4%) since this time last year. Still, not much attention has been paid to the metals on the financial networks.
Although the Fed denies that it has begun QE4, it continues to inject freshly printed money into the markets, supposedly to keep the fed funds rate in the FOMC desired range of 1.5% to 1.75%. The Fed used three QE programs to avoid an economic crash in 2008. Still, the 2008 crisis is commonly referred
“Central Banks only hold gold because of tradition (if you believe their nonsense), so it probably comes as some surprise to many that central banks bought more of this ‘traditional’ asset in the first half of 2019 than they have done in any other first half on record.
The below graph is a downward sloping bullish graph for the price of gold. Often times, such formations break out to the upside. Gold is now making its fourth attempt at bettering the top downtrend line, which is where breakouts often occur.
There was a time when going to work for a major U.S. corporation set Americans on a path to the middle class with secure retirements. No more.
Not only have central banks added to their gold holdings, so have gold-backed ETFs.
There are lots of reasons for owning gold and silver. The rising federal debt alone and a government that has abandoned fiscal responsibility could cause interest on the national debt to top $1 trillion in ten years.
For the 45 years that I’ve been a gold/silver dealer, I’ve never recommended numismatic or collectible coins. And, I’ve been proven right.
Some of the world’s most famous and successful investors have taken positions in gold. It pays to note what successful people do with their money. “Some regard [gold] as a metal, we regard it as a currency, and it remains our largest currency allocation… – Stanley Druckenmiller. Druckenmiller was chairman and president of Duquesne Capital,