Central banks are on a rapid gold buying spree. Gold was a shunned asset during the Great Moderation.
The yellow metal collapsed from a massive 80% of foreign reserves to only 15% in 3 decades. However, now a heel-turn is taking place:
For the first time since the late 1980s, gold has rotated back into becoming a favored asset among central bankers, no longer vilified.
For reference, a heel-turn is when a villain turns into a hero in a dramatic change of character. It is widely used in professional wrestling, and actors such as The Rock and John Cena have performed heel turns to the gleeful surprise of the audience.
With the heel turn now completed, could gold reach 80% of foreign reserves again?
