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According to Reuters: > This increase in money supply may be necessary to stave off economic turmoil but at the cost of devaluing the currency. Gold, by contra
by danuker 4y ago
According to Reuters:
> This increase in money supply may be necessary to stave off economic turmoil but at the cost of devaluing the currency. Gold, by contrast, is a finite physical commodity whose supply can’t easily be added to. As such, it is a natural hedge against inflation.
> As gold carries no credit or counterparty risks, it serves as a source of trust in a country, and in all economic environments, making it one of the most crucial reserve assets worldwide, alongside government bonds.
> Gold’s inverse relationship with the US dollar, another major reserve asset, is an added element to its appeal. When the dollar dips in value, gold typically rises, enabling central banks to protect their reserves at times of market volatility.
https://www.reuters.com/article/sponsored/why-central-banks-buy-gold https://www.reuters.com/article/sponsored/why-central-banks-...
- otterley 4y agoYou realize this was sponsored content "Paid for and posted by World Gold Council," right? Let's find an authoritative source in a government, as opposed to a trade group representing gold miners and sellers.
- danuker 4y agoHere you go... because Googling is hard. > The signatories confirm that gold remains an important element of global monetary reserves, as it continues to provide asset diversification benefits and none of them currently has plans to sell significant amounts of gold. https://www.ecb.europa.eu/press/pr/date/2019/html/ecb.pr190726_1~3eaf64db9d.en.html https://www.ecb.europa.eu/press/pr/date/2019/html/ecb.pr1907...