TIP638: Gold w/ Lyn Alden

This podcast episode explores the recent increase in the gold price and the buying trend of central banks. It discusses the reasons behind the shift in central banks' focus from U.S. treasuries to gold, highlighting the strategic considerations, the strength of the dollar, and the introduction of initiatives like the Belt and Road Initiative. The section also explores the differences between bank reserves and foreign exchange reserves and the factors influencing reserve accumulation. It delves into the mechanisms of buying gold for central banks and the challenges of implementing a gold standard. The role of gold in portfolios, including its performance in inflationary contexts, is also discussed. The section touches on paper gold and physical gold, as well as the possibility of gold confiscation. The discrepancy in reported and actual gold reserves held by China and Russia, as well as the popularity of gold investments in China, is highlighted. The practical aspects of buying gold, the relationship between gold and real rates, and the factors driving central banks' accumulation of gold are also explored.