Covid-19 to accelerate asset diversification and boost gold
Crisis has accelerated long-term pre-crisis trends stemming from global financial crisis
The Covid-19 crisis is likely to accelerate the diversification of official reserve portfolios worldwide, as well as boost gold as a reserve asset.
The negative yield environment created both by central banks’ response to the crisis, lowering interest rates and buying sovereign debt, as well as by structural demographic and technology changes are further depressing sovereign bond yields. This has increased the difficulties experienced by reserve managers in their prime reserve asset class, a
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