Gold News

Gold Bullion "Becoming Reserve Asset" Again

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."

Ready to start buying Gold Bullion today...?

See all articles by Gold Bug here.

Please Note: All articles published here are to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it. Please review our Terms & Conditions for accessing Gold News.

Follow Us

Facebook Youtube Twitter LinkedIn



Market Fundamentals