Central Banks Are Stockpiling Gold. What Do They Know?

Central banks around the world are buying physical gold at levels not seen in previous decades.In this episode of The Secret War on Cash, Dean Heskin and Chris Agelastos examine a World Gold Council survey discussed in the program showing that 89% of central banks expect global gold reserves to rise during the coming year and a record 45% plan to increase their own holdings.The trend itself is not new. Dean and Chris note that central banks have been aggressively accumulating gold for several years, with purchases averaging roughly 1,000 metric tons annually over the past four years, approximately twice the pace discussed for the preceding decade.What may be more important is why they are buying it.Central banks reportedly cite gold’s performance during periods of crisis, its ability to preserve value over long periods, its role as a hedge against inflation and its usefulness in diversifying reserves.Dean argues that these are not merely arguments for people expecting financial catastrophe. They are traditional financial-planning goals relevant to anyone concerned about retirement, purchasing power and long-term wealth preservation.Chris compares precious-metals ownership with maintaining a healthy diet. The objective is not to wait until a crisis occurs before taking action. It is to build resilience before the problem arrives.The second half of the program explores why this trend may be accelerating.Debt and deficits continue growing. Inflation has become embedded in everyday expenses. Confidence in fiat currencies is under pressure, and the United States has recently become involved in supporting Japan’s yen.Dean and Chris discuss the possibility that Japan could eventually need to liquidate U.S. Treasuries to protect its own economy, adding to selling already occurring among BRICS nations reducing dollar exposure.No one knows precisely what the next global monetary system will look like.What is increasingly clear is that central banks want physical gold on their balance sheets when that transition arrives.Brought to you by Swiss America.Get your complimentary Secret War on Cash Report:Call or text: 1-800-289-2646 Visit: https://www.swissamerica.com/social