Why Central Banks Buy So Much Gold

The video discusses the recent trend of central banks, especially in Eastern countries, buying gold. This is due to concerns about the US dollar's stability and the desire for a tangible, non-liability asset. Gold is seen as a stable currency that cannot be printed, unlike paper money, which has historically been devalued. The video also highlights Ray Dalio's view that gold should be considered a currency like any other, emphasizing its historical and market significance.

Why are countries like Russia and China increasing their gold reserves?

• To strengthen their military power

• To reduce dependency on the US dollar

• To increase their tourism revenue

• To support their agricultural sectors

What makes gold a unique currency compared to others?

• It is a liability for central banks

• It is abundant and easy to mine

• It cannot be printed and is scarce

• It can be easily printed

Why do central banks consider gold a stable asset?

• Because it is easy to control its price

• Because it is a tangible asset

• Because it is someone else's liability

• Because it is a digital currency

How has the value of the dollar changed since the Federal Reserve was established?

• It has become more volatile

• It has increased significantly

• It has remained the same

• It has decreased to seven cents

According to Ray Dalio, what is the case for owning gold?

• It is a short-term asset

• It is a risky investment

• It is just another currency like the yen or dollar

• It is an emotional investment