Explaining central banks’ gold purchases

posted by
December 4, 2011
Ludwig von Mises Institute
by David Howden  
Posted in Commentary

"The last two years marked a significant shift in central banks' attitudes toward gold. Since 1988, central banks have been net sellers of the precious metal. Lacking convertibility of their paper currencies into the commodity, this occurrence makes perfect sense. Why hold a physical asset with costly storage fees when there is no risk that it will ever be needed?" (12/02/11)


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