https://www.imf.org/en/Publications/WP/Issues/2023/01/27/Gold-as-International-Reserves-A-Barbarous-Relic-No-More-528089?utm_source=substack&utm_medium=emailThe IMF is setting the stage for gold to come out of the shadows in International Finance. Could be the reason that 2022 saw the most Central Bank gold purchasing in 50+ years ...
" ... active diversifiers into gold are
exclusively emerging markets. We document two sets of factors contributing to this trend. First,
gold appeals to central bank reserve managers as a safe haven in periods of economic, financial and geopolitical volatility, when the return on alternative financial assets is low. Second,
the imposition of financial sanctions by the United States, United Kingdom, European Union and Japan, the main reserve-issuing economies, is associated with an increase in the share of central bank reserves held in the form of gold."
The US is going to force emerging markets into dropping US debt and buying gold. Hope ya have some!