How Central Banks Influence the Price of Gold

Gold has long been considered a reliable store of value and a safe haven asset during times of economic uncertainty. Its price is influenced by various factors, including supply and demand dynamics, geopolitical tensions, and market sentiment. However, one significant influence on the price of gold that often goes unnoticed by many investors is the …

Why I model my gold purchases on the buying patterns of Central Banks.

Photo of the Bank of England

During these turbulent times, how can the price of gold remain almost constant? It’s been like this for over a year now. Actually, the price of gold isn’t much different today from what it was 5 years ago… with a few ups and downs along the way. At first sight, it makes absolutely no sense. …

Buying gold bullion is like establishing your own personal bank reserve.

National central banks buy gold bullion for the security it provides. While currencies can become devalued to such a degree that they become almost worthless, that won’t happen to gold. Gold prices may rise and fall, but they will never fall to zero. In fact, at the exact time that paper currencies go into free-fall, …

Owning gold, Central Banks, and ships in stormy weather.

First, what are “central banks”? According to Wikipedia: “A central bank, reserve bank, or monetary authority is a public institution that usually issues the currency, regulates the money supply, and controls the interest rates in a country. Central banks often also oversee the commercial banking system of their respective countries. In contrast to a commercial …