Gold Glitter’s Unique Shine: Why It Looks Like That
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The Czech National Bank (CNB) has significantly increased its gold reserves.
Since July 2022 (when Aleš Michl became governor),the CNB’s gold holdings have risen from 11.31 tonnes to 63.58 tonnes, with a recent purchase of 575 tonnes in the second quarter.
This increased demand from central banks is generally positive for gold prices. Experts believe central banks are long-term holders and unlikely to sell even as prices rise.
However,gold supply is stagnant,as developing new mines is expensive and companies are prioritizing debt repayment,dividends,and share buybacks.
Gold is seen as a “safe port” investment, suggesting its price may continue to increase.