Reuters analyst Jamie McGeever recently pointed out in an article that the rise in the proportion of gold in central bank reserves seems unstoppable. He pointed out that inflation concerns, deteriorating US fiscal health, controversy over the independence of the Federal Reserve, and geopolitical turmoil are causing doubts in the market about the stability of "traditional global safe assets" - long-term US Treasury bonds. In response to this, many central banks are turning back to gold, and gold has surpassed the euro to become the second largest global reserve asset after the US dollar; at the same time, the proportion of gold in central bank reserves has exceeded US Treasury bonds for the first time since 1996.
