Central banks — the entities that manage specific countries’ money supply — purchase gold for a number of reasons, including as a way to help promote financial and economic stability.
Gold is often viewed as a way to help diversify a portfolio and offset other assets’ volatility. This is partly because gold has generally performed well in the past during challenging economic periods, according to the Bureau of Labor Statistics.
Beginning in 2009, central banks have been purchasing significant amounts of gold. By 2018, approximately 10% of all central bank foreign exchange assets were held in gold, according to the Official Monetary and Financial Institutions Forum.
The central bank–related demand for gold hasn’t significantly cooled since. In 2022, it shot up 152% from 2021, ultimately reaching its highest level since 1950, according to the World Gold Council (WGC).
Factors that place pressure on the available supply of gold — such as the robust interest central banks have shown — can, in turn, lead to price increases.
During the first quarter of 2023, WGC reported that central bank gold demand more than doubled from the previous business quarter. In April 2023, spot prices for the metal reached $2,041.30 an ounce, the second-highest level in history, according to Barron’s.
As a number of U.S. Money Reserve reviews indicate, investors, like central banks, can also utilize gold as a portfolio diversification tool.
Rich D. says he chose to work with the company when he decided to include gold in his portfolio.
“As our country and the world [seem] to be in such turmoil, I knew I had to make a different choice with my savings to protect it,” he says in one of the U.S. Money Reserve reviews customers have shared on the Better Business Bureau website. “Gold, I found, is the way.”
Lawrence L., in a review posted on Google, says he’d recommend transitioning funds from another type of IRA to a precious metals–backed IRA with U.S. Money Reserve’s assistance.
“I heard the [company’s advertisement] several times before I called U.S. Money Reserve,” he says. “I’m glad I did. Transferring my IRA was easy.”
To find out more about establishing a precious metals–backed IRA and purchasing gold and other precious metals assets for your portfolio, visit U.S. Money Reserve’s website or call 1-888-708-0458.