GLITTERING GOLD

Gold recently surpassed $2,500/oz and has been rising rapidly since 10/22, when it traded at $1,650/oz. A major reason, central bank buying. From 1970-1988, cumulative net central bank gold purchases were roughly zero. From 1989-2009, banks were net sellers every year. Since 2010, they have been net buyers every year. Moreover, through 2020 net purchases averaged about 600 tons/year. Since then, they’ve averaged 2000 tons/year, a huge increase in demand.