Should Still Buy Gold ? | Kirtan Shah CFP

Single biggest reason why gold is moving up is China, let me explain

China central bank has been buying gold for straight 18 months now
China now has gold reserves upwards of 225T which is the highest since 1977
The average daily trading volume Shanghai Gold Exchange almost doubled in April
Gold is trading at a $85 premium in China vs London prices
All of this shows the demand coming from China wrt gold

But why is China buying so much of Gold?

Believe it or not, China & US are in a Cold War to be the super power.
US has an advantage because 80% of global trade happens in $ and hence most central banks have most of their forex reserves in $
China is trying to break this,
(1) In the last 9 years China has reduced its $ forex holdings by 40% and increased its gold reserves by 100%

World gold council feels that central banks globally will keep buying Gold and supporting gold price.

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