Excerpt from MarketWatch quoting DataTrek’s Nick Colas:
…. “Gold prices are up. Thank ETF investors.
That’s the takeaway from a recent note from research shop DataTrek, which contrasted the 18.4% full-year increase in the gold price with a 1% decline in global demand for the precious metal. The big price jump was a double-edged sword, DataTrek noted: it attracted investors but kept consumers on the sidelines….
Global central banks, which have been big buyers of gold in recent years, were more subdued in 2019. They bought 0.9% less gold in 2019, but that was still enough to keep full-year purchases near a 10-year high. Central banks like those in Russia and China buy gold as “a way of gaining US dollar exposure (gold is priced in greenbacks globally) without helping the American government fund its ever-growing budget deficit,” said Nicholas Colas, DataTrek’s co-founder. “Gold is also a hedge against their local currency, of course”….
Read the full article here on MarketWatch!