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Goldman Sachs : Price of gold could reach 3 000 per ounce before 2026 NaturalNews com

China’s gold market is on the rise, driven by economic growth and central bank purchases.

The Rise of China’s Gold Market

China has been steadily increasing its gold reserves over the past few years, with the country’s central bank, the People’s Bank of China, purchasing a significant amount of gold in recent months. This surge in demand has caught the attention of analysts and investors, who are now predicting that China’s massive gold purchases could have a significant impact on the global gold market.

Key Factors Driving China’s Gold Demand

Several factors are driving China’s increasing demand for gold.

In an interview with Bloomberg, Thomas stated that the gold price is likely to rise in the coming years due to the increasing demand for the precious metal.

The Rise of Gold Demand

Gold has long been a popular investment option for individuals and institutions alike. Its value is often seen as a hedge against inflation, currency fluctuations, and economic uncertainty.

Central banks are buying gold in record numbers, sparking a new era in the gold market.

The Gold Rush of 2022

The gold market experienced a significant surge in October 2022, with central banks purchasing a record-breaking 64 tons of gold.

China’s PBOC solidifies its position as the world’s largest official sector buyer of gold.

The Rise of the PBOC as a Gold Buyer

The People’s Bank of China (PBOC) has been steadily increasing its gold purchases over the past few years, solidifying its position as the world’s largest official sector buyer of gold.

The Shift in Central Bank Investment Strategies

In the aftermath of the 2022 freeze, central banks began to reassess their investment portfolios, seeking to diversify their assets and mitigate potential risks. This shift in strategy has led to a significant increase in central bank gold purchases, as these institutions seek to hedge against inflation, currency fluctuations, and geopolitical tensions.

Key Drivers of Central Bank Gold Purchases

  • Inflation concerns: Central banks are seeking to diversify their portfolios and reduce their reliance on traditional assets, such as government bonds, which have historically been sensitive to inflation. Currency fluctuations: The increasing volatility of currencies, particularly in emerging markets, has led central banks to seek alternative assets that are less correlated with currency movements. Geopolitical tensions: The freezing of Russian central bank assets in 2022 highlighted the risks associated with investing in traditional assets, prompting central banks to seek more diversified and secure options. ## The Rise of Gold as a Safe-Haven Asset**

    • The Rise of Gold as a Safe-Haven Asset

    Gold has long been considered a safe-haven asset, and its value has historically risen during times of economic uncertainty. The current surge in central bank gold purchases is driven by the growing demand for asset diversification and the increasing uncertainty surrounding global economic trends.

    Why Gold is Attracting Central Banks

  • Low correlation with traditional assets: Gold has historically been less correlated with traditional assets, such as government bonds and stocks, making it an attractive option for central banks seeking to diversify their portfolios. Store of value: Gold has traditionally been seen as a store of value, and its value has historically risen during times of economic uncertainty.

    Gold’s Growing Reserve Currency Status: A Shift Away from Fiat Currencies?

    The Rise of Gold as a Reserve Currency

    In recent years, gold has been gaining popularity as a reserve currency, with many experts predicting its potential to surpass the US dollar as the world’s primary reserve currency. According to Andrew Sorchini, a precious metals expert, gold is “getting close to becoming the world’s reserve currency.”

    Why Gold is Gaining Popularity

    Several factors contribute to gold’s growing appeal as a reserve currency:

  • Diversification: Gold offers a unique asset class that can help diversify a country’s or institution’s portfolio, reducing reliance on traditional fiat currencies.

    Sources include: Binance.com Reuters.com Bloomberg.com

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