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Tuesday, April 9, 2019

Central banks are adding gold to their reserves.

https://www.businessinsider.sg/gold-china-buying-spree-continues-as-central-banks-boost-demand-2019-4/

Central banks are adding gold to their reserves!

As gold is a non-yielding asset, it makes us wonder why the central banks around the world are adding gold to their reserves.  The traditional rationale is gold is a store of value and also a safe haven.  Therefore, the central banks' action is telling us that something is not right in the world economy.

Always watch what the central banks are doing and not what they're saying.  Seeing is believing!

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