Quote:
Originally Posted by gregpark
But why are the precious metals appreciating so rapidly in all currencies? And why have all the central banks here and around the world been gobbling it up at unprecedented rates in the last few years? Isn't that an indicator that something is changing?
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CBs buying gold to reduce US Treasuries exposure, for geopolitical reasons (New Cold War, China wants a global financial system free of US dominance, Europe/other Western also increasingly distrustful of US), economic reasons (less trade with US) and risk reasons (unpredictability of US policy/actions). Not so much selling Treasuries outright as buying less of them and, in China's case, shifting to shorter duration. Investors (some of them, only) buying gold as hedge against market weakness, USD weakness, rate cuts, Treasury oversupply, and as speculation. Other precious metals simply following gold in speculative moves.
I'm not negative on gold, I owned it in 2019 for the recession I was expecting (then Covid happened), I own it now (for now).