Gold Bullion is returning to central-bank asset management as a "reservable currency" says a leading finance analyst and advisor.
Dennis Gartman, editor of the eponymous $5000-per-year advisory letter, told South Africa's MineWeb radio this week that Gold Prices may "simply go sideways" near-term, but the metal "is quietly becoming a reservable asset.
"Honestly, in 10 or 15 years it will be the US Dollar, Gold Bullion and [Chinese] Renminbi which will be the major reservable assets" for central-bank managers.
"The persistent debate over international currency levels and the viability of fiat currencies means that gold has again asserted its position as a key component of the sector," agrees GFMS Analytics director Rhona O'Connell, also writing at Mineweb.
Examining official figures to the end of May, "Sales from signatories to the third Central Bank Gold Agreement remain at close to zero," she says, while the Russian central bank "continues to absorb gold, although the recent rate of change has slowed."
Overall, and "after 21 years of net sales amounting to a total of over 8050 tonnes," says O'Connell, central-bank attitudes to Gold Bullion are "gradually turning."
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