Róbert Rékási speaks to Central Banking about how Covid-19 has changed gold investment trends
Crisis-fighting has pushed central banks into new forms of risk-taking, which is impacting reserve managers
The price of gold has skyrocketed this year, but central banks have not flocked to invest as they have done in the past, write Rachael King and Victor Mendez‑Barreira.
Reserve managers share their views on future gold holdings, target allocations, purchasing and storage approaches, the use of ETFs, and the impact of Covid-19, in the results of a new joint Central Banking-Invesco survey. By Nick Carver and Robert Pringle
Key survey data and comments reinforce the main findings in Invesco’s central bank reserve management white paper on the revival of gold as a reserve asset.
Leaders agree to extend bilateral repo and currency swaps arrangements for another year
Portfolio grows due to FX purchases and government transfers from abroad
In a year of exceptional circumstances – especially true for gold, which, in August, saw an all-time high price – Invesco explores how pandemic-driven uncertainty has returned the precious metal to the spotlight of the global monetary system.
Sales by gold producers Turkey and Uzbekistan lead decline in global holdings
The higher yield and resilience these assets offered in 2020 may further boost reserve diversification
Crisis has accelerated long-term pre-crisis trends stemming from global financial crisis
Central bank says referendum motion is ill-defined and would hurt reserves management
‘Sure’ bonds offer the ECB a less controversial option for asset purchases
Currency continues to slide as data shows central bank’s FX reserves fell by one-sixth in 12 months
Portfolio shrinks for the first time in 2020, falling by 0.7% due mainly to falls in equities
The impact of Covid-19 is larger than when the programme was renewed in April
Lower yields remain the top worry of reserve managers in 2020, study finds
Large dollar orders may slow down foreign exchange transactions, central bank says
Perspectives on staffing, coverage, portfolio construction, benchmarking, external parties and risk