Evolution of Central Banks Gold Operations

On our webinar today we welcomed Isabelle Strauss-Kahn (Non-Executive Director, LBMA Board) and Simon Weeks (Senior Advisor Central Banks, LBMA) to discuss gold's role as a strategic reserve asset, how the gold decision making process occurs and the operational challenges within this market.

Isabelle talked about why gold is an important asset for the official sector and their motivation for buying and holding gold. The conversation also delved into the various markets or products that central banks prefer to use when buying or selling gold and the use of swaps and deposits. Within the Q&A session, Isabelle and Simon talked about the recent selling by the official sector in Q3, how this wasn’t the start of a new trend but was likely motivated by price and the need to re-align portfolio targets.

Another popular question was on the potential mobilisation of gold in response to likely large government debt burdens in the coming years; Isabelle reminded us that gold cannot be used for direct monetary financing and that throughout the global financial crisis, the European sovereign crisis and again during Covid, that gold has proven its role as a safe haven and a strategic reserve assets for central banks.

This webinar is CPD Accredited. For more information, please contact events@lbma.org.uk.

26 November 2020