Global central banks have continued to keep buying gold, adding even more of the metal to their portfolios in June. The month reportedly saw reserves climb by 8 percent, the largest monthly increase in three years, as trade and geopolitical tensions heated up.
Countries such as Kazakhstan, Russia and Turkey all added more of the metal to their reserves, while China also previously reported another large increase in its holdings. The recent trend in additions could be set to continue, especially against the current backdrop of a slowing global economy, trade wars and other geopolitical risks.
One of the primary reasons for the additions may be the ongoing move away from the dollar.
King dollar has been the global reserve currency of choice for decades, but its run as the leader could be approaching an end. If the trend away from the dollar continues, the currency could potentially lose value as dollars find their way back stateside and supply increases. Not only that, but as the Federal Reserve gets ready to embark on what could be the next series of rate cuts potentially followed by a fresh round of QE, the greenback could turn lower as it becomes less attractive to foreign investors.
Global central banks, the financial powerhouses of the globe, keep buying and continue to add to gold holdings. These central banks do so for several reasons including diversification, to backstop currencies and to add to their overall credibility. If the largest financial institutions on the planet see strong reasons to buy and hold physical gold, shouldn’t you?
Gold has been a reliable store of wealth and value for centuries, and its reputation as such is unmatched.
This key asset class not only has tremendous upside price potential but may also provide an important hedge against rising inflation, a weaker dollar, lower stocks and geopolitical risks. It is recognized and traded all over the globe, and unlike paper assets, it carries zero counterparty risk. Paper currencies have shown time and again that they decline in value over time, and the dollar may be no different. If you are looking for a strong track record and reliability, look no further.
Adding this key asset class to your portfolio has never been easier, and perhaps never more important. With the potential for a significant global recession, the ongoing trade war, numerous geopolitical risks and the next major bear market in stocks around the corner, now is the time to act.
Speak with an Advantage Gold account executive today about the potential benefits of gold ownership. Our associates are here to answer any questions you may have and can even show you how to build a significant allocation using an IRA account.
Don’t wait for the next major global recession to take hold or for the next major stock market collapse before taking action. Explore your options for gold ownership today. Call Advantage Gold at 1-800-341-8584 to get started now.
Tags: central banks, diersification, financial powerhouses, gold holdings, keep buying, reserves climb, slowing global economy, trade war