Big Gold Investors: Who Are They?

While we all know there are many private investors who hold gold as a form of wealth, most people have little to no idea about the major gold investors who carry out massive transactions on the futures market. Let’s take a look at who the major gold investors are.

  • Governments – There was once a time when a government could only print as much money as they have in gold reserves, but in the early 20th century, all this changed. Now governments can print as much money as they wish, which is not really good business; the Federal Reserve is actually a private consortium of bankers and not a department of the US administration and it stores its gold at Fort Knox. All governments act as guardian for their nation’s gold reserves, which would likely be stored in their central bank. Not all a country’s gold reserves would be announced, indeed, governments lend each other gold and during WWII, some nations secretly had their gold reserves stored elsewhere, afraid that the Third Reich would invade their country and steal their reserves of gold.

 

  • International Monetary Fund The IMF has a lot of gold and when they buy and sell, this would have a bearing on the spot price of gold. Most countries would portion some of their gold reserves into the IMF, which is managed by a special team.

 

  • Central Banks – Large banks are always looking for ways to make money and they do buy and sell gold (on paper), depending on what their financial analysts say. It is nothing new for central banks to use other people’s money to turn a profit and they keep their ears very close to the ground.

 

  • Private Investors – Perhaps around 20% of all gold trading is with small, private investors who buy gold and silver bullion, gold and silver coins and also jewellery. If you plan to buy gold and silver bullion Adelaide or any other city is offering, a Google search will help you to locate a reputable bullion dealer and then you can make an appointment to visit their offices and take possession of your gold or silver.

 

  • Managed Funds – Some managed funds invest in gold and other precious metals, as gold performs very well. Some funds are designed for high-yield income, while others are mainly for long-term growth, and the fund managers usually have great track records. Managed funds are ideal for the private investor who has little or no knowledge about the investment markets, as the fund’s performance would speak for itself.

 

  • Investment Brokers – Many investment brokers invest in gold as part of their strategy and they would buy from established central bullion dealers. Gold is commonly acquired by brokers as a hedge against inflation, as it consistently performs well.

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From the private investor’s perspective, gold, among other precious metals, is a very sound investment and there are a number of formats that you can buy – gold bars, ingots and gold coins. Many small investors take their wealth out of stocks and shares when the economy is volatile, such as the present time, with the pandemic wreaking havoc to the global economy.

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