Gold Neutrality in a Politicized World
This accelerating trend towards gold reflects a deeper transformation in the mindset of monetary policymakers. In the aftermath of the freezing of international reserves due to geopolitical conflicts, central banks have begun to question the neutrality of the dollar as a reserve asset. Gold, insulated from sanctions and sovereign decisions, now appears to be a safer option.
Additionally, high inflation, financial deficits, and divergent monetary policies around the world make gold attractive as an asset that is not counted as debt and is not subject to third-party policies. Data from 2024 indicates that only one-third of officially announced gold purchases are accounted for, while the rest is discovered through gaps in the balance of payments and large shipments of bullion from London to Asia.
Although these transactions sometimes appeared unprofitable from a commercial standpoint, their persistence suggests that their motivations are monetary and strategic rather than purely investment-driven.