With Central banks again purchase gold supplies, Carson Fitch believes the precious metal is again becoming an increasingly coveted asset worldwide.
"An increasing number of countries across the globe are stocking their central banks with gold," said George Carson, CEO of Carson Fitch, a commodity brokerage with offices in New York, London and Hong Kong.
"Iraq purchased 36 metric tonnes of gold in March, the largest purchase by a nation in three years. The impact of this purchase is not difficult to quantify. I will not be surprised if gold hits $1,600 very soon, a purchase of that significance should not be ignored." Carson added.
HSBC recently reported, "Central banks, most notably from the emerging markets, have been accumulating bullion recently as a means to diversify away from the USD. We expect central bank's bullion accumulation to total at least 400 tonnes this year, nearly double that of last year."
Carson concluded, "Recently a lot of cash rich nations have focused their attentions on their foreign reserve currencies, trying to gain an edge against currency depreciations. Whenever that's the backdrop, gold is the only asset to place in the portfolio,"
Gold shines in the spotlight as an international safe-haven asset that transcends currency. Carson Fitch recommends investors in becoming a holder of the precious metal as it begins to thrive again as the "asset of all assets".
About Carson Fitch
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