Central Banks: What Aren’t They Telling Us?

The amount of gold bought by central banks in the first five months of 2019 is up more than 73% than the previous year. With continuing signs of slowing economic growth and rising geopolitical tensions, central banks around the world are looking to diversify away from the U.S. dollar. Could this be a sign you should, too? Learn more in this episode of USMR Market Insights with Coy Wells.

Central Banks: What Aren’t They Telling Us? – Video Transcription

Coy Wells: 00:00     

In today's world, diversifying in precious metals may be more important than ever. For those who understand how important precious metals are, those are the individuals who have already gone through a recession and have experienced the losses in other areas. In the year of 2000, the gold market soared nearly 252% in the course of about six years. In the recession of 2008, gold rose nearly 300% in the course of five years. The reason why this is important to understand is that right now people have to understand that a recession typically takes place when everything is peaking. Most that have been watching the news for the course of the last 10 years understand that the economy currently is at a peak, and when the markets start to peak that means that right now our GDP is at about 3.2. Unemployment's at one of the best points that we've seen in history.

Coy Wells: 00:51  

We're also seeing right now, that's in the headline, is that the U.S. continued growth in the United States is one of the longest growth expanses recorded in U.S. history. Those are all peaking scenarios. The stock market continues to maintain and hold between 26 and 28,000 points, these are all peaking indicators. A recession takes place when an economy is peaking, not when it's on the rise and recovering from a recession, it doesn't go back into another recession. The reason why this is also very important to understand as the markets continue to peak, we're also seeing global and political tensions take place, not only here in the United States, but also overseas. Forbes magazine recently reported that the banks in 2018 had taken one of their largest acquisitions in gold ever recorded since 1971. According to the article, roughly 651 metric tons was accumulated by the banks inside the United States and central banks around the world.

Coy Wells: 01:49

Since 1971, the banks accumulated more gold in the year of 2018 and during that time frame then it accumulated through the last recessions that we had experienced. If the banks are getting ahead of the curve and acquiring precious metals today, we have to ask ourselves, what do they know that you and I don't know? What are they preparing for? What are they safeguarding against? In the course of the last 60 days, we've seen gold increase more than a hundred dollars.

Coy Wells: 02:15  

If you'd like to learn more, you can get U.S. Money Reserve's Precious Metals Report. It has a lot of good, detailed information on gold and other precious metals. To get a copy, click on the link below or call the number on your screen. If you'd like the information today, please like and share this video. And if you're watching us from YouTube, please subscribe so you don't miss a single episode. I'm U.S. Money Reserve's Coy wells, and as always, thank you for watching Market Insights.