- Write by:
-
Friday, March 27, 2020 - 12:59:02 PM
-
960 Visit
-
Print
Mining News Pro - Around the world, central banks and supranational organizations – such as the International Monetary Fund and the Bank of International Settlements – currently hold nearly 34,000 tonnes of gold as reserve assets, the World Gold Council reported in a market primer on Thursday.
According to Mining News Pro - The official holdings, most of which are held in Europe and North America, represent approximately 17% of total above-ground stocks, based on WGC’s calculation that a total of 197,576 tonnes have been mined throughout history.
The Council states that while central banks base their investment strategy on numerous factors, the primary reason for recent gold buying came down to heightened economic and political risks, low or negative interest rates, an anticipation of change in the monetary system, and the rebalancing of asset allocations.
Gold is one of the few assets that is universally permitted by the investment guidelines of the world’s central banks, and the gold market is relatively deeper and more liquid compared with other investment assets.
Gold also aligns with almost every reserve manager’s investment mantra of safety, liquidity and return. Based on the Council’s estimates, gold has provided reserve managers with an average annual return of nearly 10% (in US dollars) since 1971.
According to the Council, central banks’ behaviour with respect to gold fundamentally shifted following the 2008 global financial crisis, and the banks have been net buyers of gold on an annual basis since 2010. Over the last decade, central banks and institutions have accounted for 11% of annual gold demand.
Short Link:
https://www.miningnews.ir/En/News/507265
Canada’s corporate ethics watchdog on Tuesday said it was likely that human rights abuses had occurred at a mine in ...
Commodities usually rally when central banks cut interest rates, bolstering the case for going long raw materials in the ...
Awalé Resources (TSXV: ARIC) stock soared on Monday after the Newmont-backed gold explorer reported outstanding assay ...
French President Emmanuel Macron said on Monday the government is seeking to designate new regulated gold mining zones ...
Newmont Corp. has kicked off the sale of its Akyem gold mine in Ghana, which is attracting interest from potential ...
Vista Gold has released an updated feasibility study for its Mt Todd gold project in Northern Territory, Australia, to ...
Gold production in Burkina Faso declined last year as deteriorating security conditions in the West African nation ...
Gold snapped nine days of record-breaking gains as underlying US inflation topped forecasts for a second month in ...
A Senegalese opposition coalition backed by popular firebrand Ousmane Sonko launched its presidential campaign platform ...
No comments have been posted yet ...