Emerging market central banks will keep buying gold aggressively for the next five years to lessen their reliance on U.S. dollar assets, the World Gold Council’s senior market strategist, Joseph Cavatoni, says in a new video.
“We see this to be three, five, seven years of continued interest, maybe not at record pace, but continued interest based on the fact that they’re looking for those diversifying factors of gold,” Cavatoni said this month at an industry event in Boca Raton, Fla.
Seventy‑three central banks took part in the council’s recently released annual survey, making it the industry’s largest. Turkey’s 2023 sale of gold for lira offers a template for others facing currency stress, Cavatoni said.
The council is moving to embed gold in digital finance. It has patented a “standard gold unit” in the U.S. and Europe. Pilot programmes to digitize gold for institutional are to use the unit before retail investors, the analyst said.
Cavatoni warned that gangs and unlicensed operators have mechanized production and account for as much as 20% of supply in parts of Africa and Latin America. He urged G‑7 governments to enforce traceability and technology measures to avoid “a black eye for the industry.”
Watch below the full interview with The Northern Miner’s Western Editor, Henry Lazenby.
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