“Central bank demand for gold has increased substantially since the Global Financial Crisis and emerging markets have been among the most active purchasers. In our view, the rationale behind this is clear. Emerging market countries can face challenges around currency instability and capital flight. Substantial gold reserves foster economic confidence, enhance currency stability and create a more attractive environment for foreign investment. Many emerging market central banks accrue gold via the international market but a growing number have been able to bolster their reserve assets with domestically mined gold, often purchased from ASGM [artisanal and small-scale gold mining] operations.”
USAGOLD note: An informative look at an often-forgotten niche in the gold business – an industry that employs 20 million people worldwide, according to the World Gold Council.