Central Bankers Are Still Buying Gold After Record Bull Run
Central banks and sovereign wealth funds doubled the pace of their gold purchases in the past three years. They just aren’t declaring them.
Gold has been on a record run, and one dynamic in the market suggests it has longer to go.
Photographer: Alessia Pierdomenico/BloombergCentral banks have emerged as a driving force behind the record-breaking bull market for gold, and while the true scale of their buying is shrouded in mystery, nobody expects them to stop.
Globally, they are accumulating roughly 80 metric tons of gold a month, worth about $8.5 billion at current prices, analysts at Goldman Sachs estimate. Most of the buying is secret, although trade data indicates China accounts for a lot of the purchases, along with other unidentified buyers via Switzerland.