The United States, Canada, Australia, the United Kingdom, India, Brazil and Switzerland raised their key interest rates this month, and the European Central Bank (ECB) is likely to make the first move towards raising rates only in July.
Once a year, the World Gold Council conducts a poll among central bankers about gold reserves. This time, a total of 18 topics were covered, which are covered in more detail over almost 30 pages.
Some chapters may be of particular interest to private investors.
For example, it was determined how important twelve different factors are for holding gold in reserves. As "very important", 59% of respondents said they view the precious metal primarily as a historical position. Arguments such as crisis protection (39%), long-term value preservation or inflation protection (41%), no default risk (43%) and effective portfolio diversification (35%) have always been rated as "very important" by more than a third representatives of the central banks.
It is interesting to note the following fact: the decrease in dependence on the dollar (de-dollarization) was named the least important factor. Not a single central bank was willing to rate this factor as “very important”, and 80% of those surveyed rated it as “not important”.
A significant change of opinion was observed in the question of the general development of the gold reserves of all Central Banks in the next twelve months. Whereas last year only 52% expected an increase, now 61% are counting on net gold purchases. In terms of plans for their own central bank, 25% expect an increase in gold reserves (in 2021 it was 21%), while 70% (2021: 68%) do not plan any changes in their gold reserves.
By the way, no central bank is currently planning to sell its gold.