GOOD GOLD

In 1980, when gold peaked at $850/ounce, the share of central bank holdings of foreign exchange reserves in gold was 70%. When gold troughed out at $254/ounce in 1999, it was 10%. Today it’s 25%-30%. Central banks are steadily buying 1,000 tons of gold/year, nearly 30% of total annual production regardless of price. Add the falling dollar and rising political uncertainty and this is why gold keeps hitting highs.