In today’s Finshots we tell you why central banks now hold more gold than US Treasuries and what that tells us about money and investing.
The Story
Last week, central banks — the people who decide what money is — quietly crossed a line. For the first time in almost 30 years, the value of gold in their vaults overtook the value of US Treasuries they hold.
It’s a bit like discovering your grandmother’s jewellery box is worth more than the fixed deposit she’s been boasting about for decades. Well, that’s essentially what just happened, except on a macro scale and that changes a few things.
For decades one of the safest forms of money you could own has been US government bonds. Or call them Treasuries. They’re an important part of global finance for a few reasons. The US government is considered the ultimate borrower. Unlike a company or a household, it cannot technically go broke, because it can always…
