Reserve managers say gold is politically toxic to manage
Treasuries still used as preferred hedge despite increasing diversification away from dollars
Gold is a politically difficult asset to manage as it about the “only thing that local politicians think they understand from a central bank balance sheet”, a European reserve manager has told Central Banking’s virtual meetings.
Speaking on a panel at the event on November 10, they explained that owning bullion led to “complete paralysis”.
“We own a lot of gold, but we are not capable of doing anything with it because any moment you suggest doing anything, you get a lot of politicians from one
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