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Explore the significance of gold as a currency and reserve asset, central bank purchases trends, and strategies for hedging gold to enhance profitability and reduce volatility. Contact KKM.info@KillirKapital.com for more information.
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Is Gold a Currency? “We see gold as an officially recognized form of money for one primary reason: it is widely held by most of the world’s larger central banks as a component of reserves.” – Deutsche Bank
Demand for Gold • Net central bank purchases in 2011 exceeded 455 tonnes, the largest increase since 1964. • The World Gold Council (WGC) reported that central-bank purchases totaled 80.8 tonnes in Q1 2012, about 7% of global demand. • Over the past 12 months, net purchases have averaged almost 20% of total annual supply.
Hedging Gold • Why? • Increase profitability by knowing where to sell • Decrease volatility, making forecasting future profits easier • Create yield on gold while its being held
Questions? KKM info@KillirKapital.com