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Gold June 09, 2022 05:20:49 PM

Gold Viewed as a Reserve Asset by Central Banks

Paul Ploumis
ScrapMonster Author
Nearly 59% of the respondents said that historical position as the highly relevant factor for their organization to continue to hold gold.

Gold Viewed as a Reserve Asset by Central Banks

SEATTLE (Scrap Monster): The World Gold Council (WGC) published key insights from the recently concluded Annual Central Bank Survey. As per the findings, gold continues to be viewed favourably by central banks as a reserve asset.

Nearly 59% of the respondents said that historical position as the highly relevant factor for their organization to continue to hold gold. Also, 24% consider it as somewhat relevant factor. The performance of gold during the time of crisis emerged as the second most relevant factor, followed by the long-term store of value, with 74% respondents stating it as highly or somewhat relevant.

According to WGC, central banks tend to be more optimistic on gold as a reserve asset during the current year, with 61% of the survey participants stating that they expect global gold reserves to increase over the next one-year period.

Nearly 25% said that they plan to increase their gold reserves in 2022. For the second consecutive year, no respondents intend to decrease their gold holdings, the survey found. Furthermore, the survey said that around 50% of the central banks that purchase gold do it on the global OTC market. Also, good delivery bars remain the primary form of gold purchased by central banks, by a large margin.

 

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