Central banks are spending big on precious metals mining shares
By Samuel Gee, News Editor
12 Sep 2016
Despite their traditional disregard for gold and silver, central banks have begun to invest in precious metals mining companies, having sold off large parts of their physical bullion in recent years.
Although bankers often tend to take a negative stance on precious metals, some central banks are now choosing to invest their paper money into this more durable industry.
Both the Norwegian and Swiss Central Banks have recently printed close to $1 billion each, moving these funds directly into precious metals mining companies.
Should we view this changing attitude towards gold and silver as a sign that central banks are preparing for the worst? Or are they simply taking advantage of stocks that currently seem undervalued? Regardless of their motives the banks certainly see the potential in precious metals and seem to believe their value could soar in the future.
This only adds to a growing trend of central banks printing money to buy up anything of value. The Swiss National Bank is currently the world’s eighth largest public investor, with notable major holdings in Facebook stocks.