blog.milesfranklin.com / By David Schectman / October 9th, 2012
Foreign central banks are concerned that their major reserve currency, the US dollar is losing value. Many of them are looking toward gold since it provides stability and liquidity.
The following chart shows the amount of dollars held by the central banks in reserve. Note that the graph is heading south! Not good for the dollar but very good for gold.
Since last July, the U.S. dollar index (the value of the U.S. dollar compared to six major world currencies) has lost almost six percent. Plus the euro has fallen as well and the central banks have limited choices to consider, making gold all the more important to them.
Since last July, the U.S. dollar index (the value of the U.S. dollar compared to six major world currencies) has lost almost six percent. Plus the euro has fallen as well and the central banks have limited choices to consider, making gold all the more important to them.
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