Central banks in Europe and emerging market countries have been buying more gold.
Globally, central banks are “set to buy more gold this year than at any time since the collapse of the Bretton Woods system, 40 years ago.”
But, apparently, their purchases are “minuscule compared with the size of the global gold market” — a statement that is instructive in itself.
Nevertheless, the purchases are helping gold to rise, up 25% so far this year.
“We’re going back to a time when gold is seen very much as money… a complete reversal of the attitudes we saw during the 1990s”, said the director of precious metals sales at Barclays Capital.