Is This Why Central Banks Are Rushing to Buy Gold: Geopolitical Conflagration Followed by a Monetary Crisis with the U.S. Dollar at the Epicenter

• Is This Why Central Banks Are Rushing to Buy Gold: Geopolitical Conflagration Followed by a Monetary Crisis with the U.S. Dollar at the Epicenter
  by Brandon Smith, https://www.birchgold.com/
  Gold has seen an impressive price spike in the past 18 months, and if you are wondering what the cause is, you’ll find almost everyone has a different theory. That said, certain factors in historic gold rallies tend to be ignored. For example, the mainstream financial media often hyper focuses on stimulus measures by the Federal Reserve as the cause, but I would remind people that the most recent upward trend in gold started while the Fed was tightening liquidity and raising interest rates, not stimulating. Also, many analysts suggest that precious metals absorb investment cash flows when equities are sliding, yet, for now, stocks have been rallying for the past year as gold prices also trend upward. So, what is the mainstream missing here?
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  First and foremost, it’s important to understand that gold is not necessarily just an inflation hedge; it is also a crisis hedge. As economic and geopolitical uncertainty grows, gold prices skyrocket. The past decade has seen uncertainty and instability that the world has not seen for almost a century. The problem is, the average American is oblivious to this state of affairs. They have no idea how bad the situation can get, as they assume there are checks and balances to counter any potential disaster in the financial structure. They assume that the government or the banks will step in.
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  However, there are signals that tell us that this will not be the case. In fact, it appears that central banks around the world are preparing for an event that they either cannot quantify yet or simply refuse to warn the public about. This is evident in the acceleration in gold stockpiling by banking institutions.
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  In 2018, foreign central banks bought levels of gold not seen since 2010. The past year of 2019, according to 3rd quarter figures, shows that banks bought even more; 12% more than in 2018. Last year, central banks purchased at least 550 tons of the “barbaric relic”, and it looks like they don’t plan to stop anytime soon.
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  Leading buyers have included Russia, China and Turkey, with the former two being the leading buyers for several years now. But central banks aren’t just buying gold, they are also demanding their gold storage be transferred away from offshore holdings and back to their own vaults.
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  Germany repatriated $31 billion (583 tons) in gold from Paris and New York vaults. Turkey repatriated 220 tons from the Federal Reserve. The Netherlands repatriated 122 tons. Poland repatriated 100 tons of gold from vaults in England. Both Hungary and Romania have announced plans to get their gold holdings back, and nationalists in Italy have demanded that Italy’s gold reserves be released by banks and returned to public control.
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  The bottom line is, there is a gold rush going on by central banks as well as governments, and the public is being left utterly out of the loop as to why.
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  I would suggest that it’s clear what is going on: They know that a global crisis is about to happen, and so they prepare as any smart investor would, by buying the one commodity that always goes up when the manure hits the fan and most other assets go down. But what is the nature of the crisis they are preparing for? Most likely, a geopolitical conflagration followed by a monetary crisis with the U.S. dollar at the epicenter.
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