Excerpt from MarketWatch quoting DataTrek’s Nick Colas:
…. “Nicholas Colas, co-founder of DataTrek Research, explains:
“Since gold is priced in dollars around the world, non-U.S. central bank buying is a way for them to have dollar exposure (desirable if your own currency is under pressure) without owning Treasuries or other U.S.-backed financial assets,” he said.
Even better, Colas noted, “for governments that have an axe to grind to Washington, buying gold is one way to store value without helping the U.S. government fund its $1 trillion/year deficit. In fact, they likely have to sell Treasuries to fund these purchases”….
Read the full article here on MarketWatch!