World Central Banks Shifting to Gold at a Record Pace

In the past, both the dollar and gold were considered as safe havens, but nowadays, investors see gold as much safer.

SEATTLE (Scrap Monster): The world central banks are showing increased demand for gold. As part of their revolt against the U.S. dollar, there has been a rapid shift towards gold in recent times.

According to Ruchir Sharma, chair of Rockfeller International, central banks are seen reducing their dollar holdings. At the same time, these banks account for almost one-third of the monthly global demand for the yellow metal. The central bank gold purchases have hit highest level in history. The buying spree has pushed gold prices to near-record levels, he added.

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The top gold purchasers among central banks are mainly from developing countries, such as China, Russia and India. These three countries along with Brazil and South Africa are in efforts to create a new currency, aimed at ending dollar dominance. Also, Philippines and Thailand too are reportedly attempting to create alternative currencies. In fact, the number of central banks in pursuit of digital currencies has tripled in three years.

In the past, both the dollar and gold were considered as safe havens, but nowadays, investors see gold as much safer. It is evident from the rise in gold prices during the short banking crisis during March this year, when dollar reported decline. The two assets reported largest difference in movement during this period.

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