Saturday, February 20, 2016

Central Banks Likely Sellers of Gold

As the reluctantly moves toward electronic money, gold will be increasingly viewed as a barbarous relic of the past. This relic, however, will remain a top safe haven destination as the world's dollar-centric monetary system evolves. Public sector selling of gold, including Canadian central bank, should increases as public coffers run dry and their primary holding (public sector assets such as bonds) start to falter . While central bank selling could extend cause building in gold until 2017, it's bullish.

Headline: Canada sells off large chunks of its gold reserves

The government of Canada sold off large chunks of its gold reserves in recent weeks, continuing a pattern of moving away from the precious metal as a government asset.

According to the International Monetary Fund’s International Financial Statistics, Canada held three tonnes of gold reserves as of late 2015.



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