Central Banks have been a major driver in the new gold bull market But what's next? https://t.co/2NZr6VmFdL h/t @dailychartbook https://t.co/9WIttNoaFI
There is clear evidence, data world central banks have chosen in large part #gold as etalon, anchor of the new monetary system. Almost all the official gold holdings sold between 1965 and 2008 has been bought back after the financial crisis between 2008 and today 2024. https://t.co/0WXQ6pBeuL
"Don't worry, stocks and bonds *almost never* both fall at the same time" 1931, 1969, 2022: ๐บ Not a reason to discard stocks or bonds, and especially not a reason to discard asset allocation, but certainly a prompt to be more clever about diversification efforts andโฆ https://t.co/yt158iQbMB
Recent trends indicate a significant shift in global central bank reserves, with gold now comprising 17.6% of total reserves, surpassing the Euro for the first time in history. The U.S. dollar remains the dominant currency, holding a 48% share. This change reflects a broader movement among emerging central banks, which are increasingly favoring gold over the Euro. Analysts have noted that while stocks and bonds typically exhibit a negative correlation, this relationship has altered since 2022, with both asset classes showing similar price cycles in recent times. Studies suggest that bonds continue to serve as a valuable tool for asset diversification, particularly during equity market downturns. The evolving dynamics of central bank reserves and asset allocation strategies underscore the importance of adapting investment approaches in response to changing market conditions.