Why Are Central Banks Buying So Much Gold?
- The big change recently is coming from countries wanting to avoid banking and other economic sanctions. They see what is happening to Russia and they don't want it to happen to them. Turkey, India, Qatar, Kazakhstan, and Uzbekistan are big buyers. All are susceptible to sanctions.
- The gold market is looking down the road and seeing lower interest rates and lower inflation thus hamering real interest rates. Real interest rates might be the biggest factor affecting the price of gold.
- The Indian rupee is stronger thus making gold cheaper to Indian buyers who account for half of the world's demand for gold.
How do we make money from this?
Buy gold! Buy gold shares!
I'm already long gold. I would focus my attention on gold miners more than gold and i would focus even more on junior miners more than senior miners.
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