Foreign governments have begun reallocating at least part of their holdings to gold an old market stalwart that once underpinned the global monetary system, but fell out of favor when governments embraced deficit spending and paper money untethered from bullion.
The U.S. Treasury’s International Capital (TIC) data for January illustrated a phenomenon that’s been underway for at least a year: Foreign official buying of debt is ebbing and is being partly displaced by monetary authorities stacking up on gold.”
Renaissance Capital says Russia may Start to Import Gold
Even central banks and nation states find a need for diversification. The most important point David makes is that global acquisitions of dollar-denominated debt are in decline while official sector purchases of gold are on the rise.
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