OMFIF’s 2016 edition of Global Public Investor , which reports on asset management performance by central banks, sovereign funds and public pension funds , "highlights gold’s renaissance as a traditional investment haven, with central banks' net purchases accelerating, as result of purchases by institutions led by China, Russia and Kazakhstan, among others, amid drying up of sales by developed country central banks.”
“In the febrile atmosphere on world markets, gold is ‘coming into its own’ as an asset that is not issued by any state or government, at a time when asset managers around the world are querying whether yields are sufficient to cover country risk,” the OMFIF report says.
As reported in our latest Gold Demand Trends report, central banks added 566 tonnes of gold (US$21 billion) in 2015 – the 6th consecutive year of net purchases.
During the first quarter of 2016, central banks bought 109 tonnes, and we at WGC expect total net purchases to range between 400-600 tonnes for 2016 as a whole.
We believe that the prolonged environment of low or, in many cases, negative interest rates will likely result in structurally higher demand for gold from central banks.