Own Gold As “Extremely Low-Risk Asset” – Rogoff Advises Creditor Nations…” Russian central bank bought another 500,000 troy ounces of gold in April “
By: Mark O’Byrne, GoldCore
GoldSeek.com
Monday, 23 May 2016
Own gold as it is an “extremely low-risk asset” is the advice of Professor Kenneth Rogoff to emerging market, creditor nation central banks including the People’s Bank of China (PBOC).
Rogoff believes that there is a good case to be made that emerging market central banks, such as the People’s Bank of China who have over $3.3 trillion in foreign exchange reserves, accumulate gold as this would “help the international financial system function more smoothly and benefit everyone”.
Russian central bank bought another 500,000 troy ounces of gold in April (ShareLynx)
Writing in Project Syndicate Rogoff notes that:
“Moreover, there is a case to be made that gold is an extremely low-risk asset with average real returns comparable to very short-term debt. And, because gold is a highly liquid asset – a key criterion for a reserve asset – central banks can afford to look past its short-term volatility to longer-run average returns.”
The Rest…HERE
