The world’s second-largest economy is buying gold like it’s no one’s business. According to analysts, as the US-China trade war intensifies, China is bulking up its bullion reserves – most likely in an attempt to de-dollarize. Russia is doing the same, along with a number of central banks in developing economies. So why is gold being stockpiled? And why on such a large scale?
Gold has long been considered a safe haven investment – when markets are volatile gold tends to maintain, or even increase, its value. Unlike indices and currency values, physical gold is a tangible metal that can be held in one’s hand; it’s not subject to interest rate or market fluctuations. Gold is seen as a form of investment insurance against economic downturns, inflationary pressures, and currency manipulation.