A recent World Bank report highlights a global shift by central banks from U.S. dollar reserves to gold, emphasizing gold's role as a stable hedge against inflation and geopolitical uncertainties. The "Gold Investing Handbook for Asset Managers," authored by Kamol Alimukhamedov, underscores the strategic pivot towards gold amid challenges like the 2008 financial crisis, trade wars, and recent geopolitical tensions. This trend reflects a broader move towards de-dollarization, driven by gold's resilience as a financial safeguard.
Central banks' growing preference for gold, as shown in a 2022 survey, marks a significant shift from past practices, with banks increasingly buying gold in response to economic uncertainties and the potential for financial sanctions. This move towards gold not only highlights its historical role during crises but also suggests a potential reevaluation of global financial reserve strategies, indicating a paradigm shift in the management of national reserves amidst evolving geopolitical and economic landscapes.
Source: Ernest Hoffman, 2024, 'World Bank reveals why central banks are dumping greenbacks for gold',
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