More Central Banks Than Ever Plan to Build Up Their Gold Hoards
In a survey of 72 monetary authorities, 43% said they expected their gold reserves to increase, up from 29% a year earlier and the highest figure in eight years of data collected by the World Gold Council and YouGov. None anticipated a decline.
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Associated Press
14 minutes ago
- Associated Press
Why Central Banks Around the World Are Piling on Their Gold Reserves – And What It Means for Retail Investors
07/02/2025, London,England // KISS PR Brand Story PressWire // In recent years, central banks have been making a quiet yet powerful move: buying gold—lots of it. From China and India to Turkey and Poland, countries are adding to their gold stockpiles at the fastest rate in decades. But why is this happening now, and what should retail investors make of it? Let's dig into the motivations behind this global gold rush and what it means for you, especially in the age of the so-called 'Gold Bank'. 𝑨 𝑺𝒉𝒊𝒇𝒕 𝒊𝒏 𝑮𝒍𝒐𝒃𝒂𝒍 𝑺𝒕𝒓𝒂𝒕𝒆𝒈𝒚 The world's central banks added over 1,000 tonnes of gold to their reserves in 2023 alone—the highest annual purchase on record, according to the World Gold Council. What's driving this move isn't just financial. It's strategic. Gold has always been a hedge. Against inflation. Against currency collapse. Against geopolitical tension. Central banks—whose job is to manage national currencies and monetary policy—are increasingly uneasy about the US dollar's dominance and the state of the global economy. That unease is translating into action. Take China, for instance. The People's Bank of China has been steadily increasing its gold reserves month after month. Part of this is about diversifying away from the dollar. Holding gold insulates a country from the whims of US interest rate hikes and political decisions like sanctions. It's a buffer. A statement. And in times of global friction, it's insurance. 𝑻𝒉𝒆 𝑫𝒐𝒍𝒍𝒂𝒓 𝑫𝒊𝒍𝒆𝒎𝒎𝒂 Many central banks are nervous about their over-reliance on the US dollar. With the dollar still accounting for around 60% of global reserves, any volatility in the American economy sends shockwaves worldwide. But the geopolitical weaponisation of the dollar—sanctions, asset freezes, and trade restrictions—has made some countries wary of holding too much of their wealth in greenbacks. Gold, in contrast, is neutral. It doesn't rely on the performance of any one country. It can't be frozen, blocked, or sanctioned. It's physical. It's universal. And in uncertain times, that's exactly what institutions crave. 𝑰𝒏𝒇𝒍𝒂𝒕𝒊𝒐𝒏 𝒂𝒏𝒅 𝑹𝒂𝒕𝒆 𝑽𝒐𝒍𝒂𝒕𝒊𝒍𝒊𝒕𝒚 Even in developed markets, central banks are under pressure. Inflation may be slowing, but the damage from the post-COVID monetary expansion is still lingering. Interest rates remain volatile. Bond markets have been unpredictable. And while fiat currencies lose value to inflation, gold maintains purchasing power over the long term. Central banks are now viewing gold as a way to stabilise their reserves. Unlike currencies or bonds, gold doesn't carry credit risk or default risk. It's a passive, enduring store of value. In a world full of uncertainty, it's a safety net. 𝑻𝒉𝒆 𝑹𝒊𝒔𝒆 𝒐𝒇 𝒕𝒉𝒆 𝑮𝒐𝒍𝒅 𝑩𝒂𝒏𝒌 𝑴𝒆𝒏𝒕𝒂𝒍𝒊𝒕𝒚 There's another angle to this: reputation and trust. In many ways, central banks are behaving more like what some are calling a " Gold Bank "—institutions that safeguard real, tangible wealth rather than abstract monetary tools. Think of it this way: if a central bank holds only paper assets—foreign currencies, debt instruments, and derivatives—its reserves are essentially IOUs. But gold is real. Gold is owned. And that's a powerful message to markets, investors, and citizens. The term Gold Bank is starting to gain traction as more national institutions look to gold not just as a reserve asset but as a backbone of financial credibility. 𝑾𝒉𝒂𝒕 𝑻𝒉𝒊𝒔 𝑴𝒆𝒂𝒏𝒔 𝒇𝒐𝒓 𝒕𝒉𝒆 𝑹𝒆𝒕𝒂𝒊𝒍 𝑰𝒏𝒗𝒆𝒔𝒕𝒐𝒓 If central banks are loading up on gold, what should everyday investors take from that? 1. 𝑮𝒐𝒍𝒅 𝒊𝒔 𝑩𝒂𝒄𝒌 𝒊𝒏 𝑷𝒍𝒂𝒚 Gold has always been part of the financial ecosystem, but for years it was sidelined by equities, tech stocks, and crypto. That's changing. The fact that institutional players are reinforcing their gold holdings should signal that it's time for retail investors to reassess their own diversification strategies. Gold is not about explosive gains—it's about protection, preservation, and patience. But with so much institutional demand, even price growth is becoming a factor. Retail investors who get in early may benefit not just from safety, but from steady upside. 2. 𝑪𝒖𝒓𝒓𝒆𝒏𝒄𝒚 𝑫𝒆𝒗𝒂𝒍𝒖𝒂𝒕𝒊𝒐𝒏 𝑰𝒔 𝒂 𝑹𝒆𝒂𝒍 𝑻𝒉𝒓𝒆𝒂𝒕 Whether you hold pounds, euros, or dollars, your money is under threat from inflation and government policy. Central banks know this—and that's why they're moving to hard assets. For retail investors, this should serve as a wake-up call. The value of your savings isn't guaranteed. Gold provides a way to hedge against the erosion of fiat value. 3. 𝑷𝒉𝒚𝒔𝒊𝒄𝒂𝒍 𝒗𝒔. 𝑷𝒂𝒑𝒆𝒓 𝑮𝒐𝒍𝒅 There are many ways to invest in gold—ETFs, mining stocks, futures contracts, and physical bullion. The growing appetite among central banks is overwhelmingly for physical gold, not paper proxies. This trend may drive up the premium on physical gold and increase competition for reliable storage. Retail investors should take note: if institutions are opting for real metal over paper, it might be wise to follow their lead. The rise of the Gold Bank mentality means physical custody is back in fashion—for reasons that go beyond price. 4. 𝑾𝒂𝒕𝒄𝒉 𝒕𝒉𝒆 𝑩𝑹𝑰𝑪𝑺 𝒂𝒏𝒅 𝑬𝒎𝒆𝒓𝒈𝒊𝒏𝒈 𝑴𝒂𝒓𝒌𝒆𝒕𝒔 Countries like Russia, India, and Brazil are actively building their gold reserves. This could signal a long-term trend of realignment in the global financial system. If BRICS nations begin to trade with each other in gold-backed instruments or local currencies tied to gold, it could reduce global reliance on the dollar and shift the balance of financial power. For investors, this creates both risk and opportunity. Currency markets may become more volatile. Commodities may see increased speculation. And gold could see growing demand—not just as an investment, but as a geopolitical tool. 𝑭𝒊𝒏𝒂𝒍 𝑻𝒉𝒐𝒖𝒈𝒉𝒕𝒔: 𝑨 𝑵𝒆𝒘 𝑭𝒊𝒏𝒂𝒏𝒄𝒊𝒂𝒍 𝑬𝒓𝒂? The central bank gold rush isn't just a financial trend—it's a political and strategic one. It reflects the cracks in the old monetary order and the rise of a new one where trust, security, and sovereignty are paramount. The term Gold Bank captures this shift—a move away from fiat dependence and towards real assets. Retail investors should read the writing on the wall. When the most powerful financial institutions in the world start snapping up gold, it's not a fad. It's a signal. Diversification isn't optional anymore—it's essential. Gold isn't just for doomsday preppers or hedge fund managers. It's becoming mainstream again. And for anyone serious about protecting wealth in uncertain times, it might be the smartest play in the book.
CBS News
an hour ago
- CBS News
How to lower auto insurance costs without sacrificing security
We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. The cost of car insurance has skyrocketed, but there are ways to reduce the expense without sacrificing your coverage. Getty Images/iStockphoto Inflation has been widespread over the last few years, but the car insurance industry has been hit particularly hard by the higher costs that have resulted from it, which have led to increases in auto repair prices. Over the last three years, auto insurance costs in the U.S. have increased by a staggering 51%, according to Insurance Business America. Other factors, like extreme weather events and an uptick in litigation, have also helped to drive up the cost of car insurance. Given today's higher cost of auto insurance, many drivers have found themselves at a crossroads and now wondering whether it makes sense to pay more for their policies or risk reducing their coverage, and in turn, their costs. But you may not have to make that choice. In fact, there are ways that drivers may be able to reduce auto insurance costs without sacrificing their security. Find out how affordable your car insurance coverage could be now. How to lower auto insurance costs without sacrificing security Everyone has different risk factors and coverage needs, which impact their car insurance costs. To save money on your auto premium insurance without compromising your protection, though, here are some steps you can take: Maximize your discounts One of the easiest ways to reduce your auto insurance costs is to take advantage of the discounts you qualify for. Car insurance companies have various types of discounts that you may qualify for to help lower costs, so be sure to inquire about them. "A bunch of insurance companies offer you discounts if you have an anti-theft device installed in your car, or if you have a paperless policy, or if you work at a certain job, or if you pay your premium in full instead of in installments every month," says Michael DeLong, a research and advocacy associate with the Consumer Federation of America's campaign for fair auto insurance. If your current insurance provider offers limited discounts, you may want to shop around and check out other options. Learn more about the car insurance coverage options you have today. Bundle your insurance policies Many insurance companies will offer hefty discounts if you bundle your policies, which typically means purchasing your auto insurance and home insurance or renters insurance from the same provider. However, you may be able to bundle other policies with your auto insurance to get this type of discount. So, if you're already paying for multiple insurance policies with different companies, consolidating them through a single company could lead to big discounts. Review your coverage If you have a full coverage policy, you likely have a combination of liability, collision and comprehensive car insurance. When combined, these coverage options protect you in a range of situations. Your liability insurance covers both bodily injury and property damage to other drivers. While it covers your liability, it doesn't cover any damages to your vehicle. That's where collision and comprehensive coverage help keep your bases covered. Collision coverage kicks in for collision-related events, while comprehensive car insurance covers you for non-collision-related events like theft, fire and floods. While these optional coverages boost your level of protection, they also hike up costs. Many drivers can benefit from full coverage, but if you own your vehicle outright and it has significantly depreciated, you may be able to scrap collision and comprehensive coverage. "If your car's value is less than 10 times what you pay annually for comprehensive and collision coverage, it probably makes some sense to drop them," says DeLong. Just remember if something were to happen to your car and you were at fault, then you'd be on the hook for any repairs or to replace it. Raise your deductible Raising your deductible can be a low-effort way to lower your car insurance premiums without sacrificing security. The deductible on your insurance policy is the part you pay when you file a claim before your insurance coverage benefits take effect. "You could increase your deductibles and significantly reduce your cost," says Mark Friedlander, senior director of media relations at the Insurance Information Institute, a national nonprofit research and education organization. So if your current deductible is $500 and you increase it to $1,000, your auto insurance premiums may drop. Essentially, you're lowering costs now in exchange for the possibility of paying more later. If you can afford that jump or have been claims-free, this simple move can result in significant savings. According to the Insurance Information Institute, your premiums may drop 15% to 40%, depending on the deductible you choose. Update your mileage Have you been driving less? Maybe you're retired, working from home or taking public transportation more often. Whatever the driver, though, if you're racking up fewer miles on the odometer, it may help lower your auto insurance costs. "Let the insurance company know because lower mileage means that you are less risky to insure, and you could get a lower premium," says DeLong. Some auto insurance companies may even offer pay-per-mile car insurance or other types of usage-based insurance that can help reduce costs for low-mileage drivers. Keep an eye on your credit Insurance companies review many different risk factors when issuing your policy. Some obvious ones include your driving record, mileage and the type of vehicle you drive, but one that might not be as obvious is your credit history. In many states, insurance providers are free to consider your credit as part of the process when issuing a policy and determining rates, so any credit blips could have a big impact on your costs. "It's well worth your time to check your credit score and your credit report because errors happen more often than you think, and you should try to correct them," says DeLong. "If you spot any errors, reach out to your auto insurance company and ask them to recalculate your premium and focus on improving your credit score to lower your costs, because this can actually save you quite a bit of money on auto insurance." So, it makes sense to keep an eye on your credit. Your payment history and amount owed have the most significant impact on your credit score, so paying your bills on time and keeping your credit card balances relatively low can help. And, if you do find errors on your credit reports, be sure to contact each credit bureau to start the dispute process. Get multiple quotes Whether you have liability or full coverage car insurance, it's a good idea to shop for your policy. While car insurance prices have gone up across the board, it's still a competitive market. That means you may be able to score a better price somewhere else, so do your research and compare your options. Start by checking for discounts and getting several car insurance quotes. Before making a switch, though, take a look at the financial strength of the company. "You want to make sure the company is very financially stable, that it has a strong track record for paying claims," says Friedlander. The bottom line If you want to lower your auto insurance costs, you don't necessarily want to cut down on the coverage. Though each state has its own minimum liability coverage levels, Friedlander recommends getting more than just the minimum. However, he acknowledges that many consumers are having to make tough decisions in today's economic landscape. "Do you put food on the table or just spend more for insurance?" says Friedlander. "Obviously if you're on a tight family budget…at least carry the state minimum so you're not violating the law." Start by getting the minimum coverage and understanding which other coverage options are necessary or most important to you. Use these tips as a guide to help lower costs and continue to shop around regularly.
Forbes
an hour ago
- Forbes
Buy This Growing Dividend As Markets Climb A ‘Wall Of Worry'
Couple upset headache depressed from family cost got higher holding receipts from supermarket with ... More calculator by rising grocery prices and surging cost as an inflation financial crisis. getty Will the new peace in the Middle East hold? What will happen when the 'reciprocal tariff' deadline arrives on July 9? Truth is, no one knows . But we contrarians DO know this: Shaky times like these are tailor-made for us. Yes, the S&P 500 has been shrugging off all of this (stocks do climb a wall of worry, after all). That's true. But it's also caused a lot of mainstream investors to miss the many strong dividend deals that are still on the board. Near the top of my list for these 'dumpster-dive' payers is the Hershey Co. (HSY). Let's look at a few reasons why HSY is a, er, sweet buy now. The company's answer to overseas worries can be summed up in six words: Make it where you sell it. The choco-giant churns out its confectioneries at 14 US plants, including in Hershey, Pennsylvania (of course!), as well as Virginia, Tennessee and Illinois. It also makes other snacks (more on those in a second), like Dot's Homestyle Pretzels and Pirate's Booty puffs, at facilities in Indiana and Kansas. Internationally, Hershey has plants in Brazil, India, Canada and Mexico. That local focus gives it some insulation if those countries slap retaliatory tariffs on US imports. Moreover, international sales are only about 10% of yearly revenue, going by 2024 numbers, so we're really talking about a domestic company here. Nonetheless, Hershey does face one big cost its C-suite can't fully control. Let's talk about that now. Dividend Growth Stock Dethroning 'King Cocoa' Hershey runs on cocoa like a Ford (F) F-150 runs on gasoline. In all, the bean accounts for about 20% of Hershey's cost of goods sold. That's big enough that you can actually see fickle cocoa prices wrenching Hershey's stock up and down: HSY Cocoa Prices Ycharts Soaring cocoa is one reason why HSY is trailing the market this year, down about 1.4% as I write this, compared to about a 4.4% gain for the S&P 500. But our 'Hershey bears' are thinking too short term: First, despite cocoa's longer-term rise, it's well off its peak—down double-digits so far this year. Second, while cocoa prices are forecast to stay strong in 2025, the World Bank forecasts a 13% drop in 2026. What could cause that? I don't know about you, but when I hit the grocery store, I'm cutting back. And with chocolate on the rise, more people (like my family of four) are likely to opt for cheaper snacks. The cure for high prices is, after all, high prices! Candymakers are ahead of this shift. Hershey, for example, launched its crunchy waffle cone bar last summer, with, as the name says, waffle-cone bits that displace some chocolate. That's a small example; the company's real secret weapon is Reese, its biggest sales generator, which is synonymous with peanut butter. That gives it lots of leeway to roll out new non-chocolate products, like its new Reese peanut-butter-filled pretzels, launched in April. Other, similar things are happening in the background, too, like Hershey's 2023 purchase of two plants from Weaver Popcorn Manufacturing, as well as its 2022 buy of Pretzels, Inc. These moves let Hershey sidestep shifting cocoa and meet shoppers where they are. Meantime, management has embarked on a two-year restructuring plan, with the goal of saving $300 million through automation and streamlined production. That's helped push up Hershey's free cash flow (FCF), despite pricey cocoa: Hershey FCF Ycharts That rise in FCF helped power a 32% boost to HSY's dividend in 2024. This is where the 'Dividend Magnet' comes in, telling us this one really is an overlooked bargain. As you can see below, the stock price has tracked the payout higher in the long run—even running ahead of it in the pandemic, as lockdowns boosted snack sales. Until early last year, that is. HSY Dividend Magnet Ycharts To be sure, the stock's 3.3% yield doesn't really get our blood sugar up, but it is more than double the S&P 500 average. What we're really focused on here is payout growth—and, more important, the fact that the stock has fallen off the dividend's pace. That sets us up for 'snap back' upside in the coming months. Moreover, as Hershey cuts costs and cocoa prices retreat, the company could surprise with another big payout hike—and we want to be in when that happens. One last thing: This stock is a standout for its low-volatility, with a five-year beta rating of 0.28, meaning it's less than a third as volatile as the S&P 500. That's the kind of tranquility we love in a market like this. Brett Owens is Chief Investment Strategist for Contrarian Outlook . For more great income ideas, get your free copy his latest special report: How to Live off Huge Monthly Dividends (up to 8.7%) — Practically Forever. Disclosure: none
