Central Bank Gold Sales: The Worst Thing To Happen To Gold This Century?

Gold has climbed to a two-week high today as a weaker dollar and falling oil prices reshape market expectations.

Hopes of a potential peace agreement between the U.S. and Iran have pushed oil prices lower. That, in turn, has supported bond markets, eased yields and reduced expectations of further rate hikes by the Federal Reserve. Markets are now pricing in just a 12% chance of additional hikes by December.

At the same time, the U.S. dollar remains near a two-month low, making gold more attractive globally, while declining Treasury yields reduce the opportunity cost of holding it.

Silver has also moved sharply higher, up over 3% today.

But perhaps the most important development isn’t happening in daily price movements at all. We were not surprised to read that China’s central bank has just reported its 18th consecutive month of gold purchases.

If the recent market move feels reactive, we believe that the broader trend is anything but. Earlier this week, I recorded a webinar with Jan Skoyles and Stephen.

We discussed the structural market issues driving both silver and gold demand. Topics included central bank accumulation, geopolitical risk and the changing role of reserve assets.

And that brings us to the real question: what happens when the largest institutional buyers in the world are accumulating gold regardless of price?

We explore exactly that in this GoldCoreTV video:

This is not a discussion about short-term price forecasts.

Instead, it looks at:

• Why central banks that once sold gold are now buying it aggressively
• What has changed in the global financial system since 2008
• Why price is no longer the key factor for institutional buyers
• What “price-insensitive demand” means for the future of gold
• And how private investors should think about allocation, ownership, and storage

It also revisits one of the most consequential decisions in modern financial history: the UK’s gold sales beginning on May 7th, 1999. And what that tells us about today’s shift in thinking.

If you’ve been watching the gold price and wondering whether you’ve “missed it,” this video offers a very different perspective.

As always, if you would like to discuss your current holdings, your allocation, or the practicalities of owning physical gold in a secure, allocated structure, our team is here to help.