Case for central banks to keep buying gold remains strong, ECB/Bundesbank Nagel says - investingLive
Case for central banks to keep buying gold remains strong, ECB/Bundesbank Nagel says - investingLive
Source: investingLive
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DW NOTE
Nagel's case rests on assumptions that no longer apply. Central banks accumulated 1,037 tonnes in 2023 expecting geopolitical hedges to hold value. Gold is down 21.8% from January despite a U.S.-Iran war, a closed Hormuz, and IEA forecasts of a 6% global oil supply drop. The diversification thesis survives only if you ignore what diversification is supposed to do.