Benzinga: China's Secret Gold Play Fuels Goldman's $4,900 Target
Article by Stjepan Kalini in Benzinga
Goldman Sachs expects a significant wave of central-bank gold purchases for November. The bank’s outlook anticipates a continued shift in reserve management as policymakers hedge against geopolitical and financial risks.
According to Reuters, Goldman’s latest estimates indicate 64 tons in September, a significant increase from the 21 tons projected for August. The estimate supports strong buying through year-end, as emerging-market central banks continue to purchase.
Yet, a large portion of these purchases is not publicly reported. The World Gold Council estimates that as little as one-third of global central bank buying is reported to the IMF. The number is down from roughly 90% only four years ago.
China’s Hidden Accumulation Strategy
China is a prime example of this trend. Official monthly disclosures show purchases of only 1.9 tons in August, 1.9 tons in July, and 2.2 tons in June. Yet few analysts believe these figures reflect actual buying.
Societe Generale estimates that China could accumulate as much as ......