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There are several reasons why central banks have been adding to their gold reserves recently, experts say. Getty Images
Central banks have added significant amounts of gold to their reserves in recent years — and their buying continues even as gold’s price reaches new highs.
While the precious metal offers unique protections during economic uncertainty, it also comes with challenges. Storage costs and lack of income generation, for example, make it a complex investment choice.
These tradeoffs raise this question: Why do the world’s largest financial institutions value gold so much? Below, three experts who track central bank activity reveal the reasoning and offer helpful context that could inform your approach to gold buying.
Find out more about adding gold to your investment portfolio today.
Why do central banks buy gold? Experts weigh in
Here are six reasons why central banks buy gold, according to industry professionals:
Diversification
Central banks traditionally held most of their reserves in major world currencies, especially U.S. dollars. Today, many are shifting this balance.
Why do central banks buy gold? Experts weigh in
