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Gold vs US Treasuries -Central Bank Reserves Crossover - Should you be Worried?

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Have you found yourself wondering what all this talk about central banks holding more gold reserves than US treasuries means? Well, you’re not alone. I did a little digging and just thought I would share what I found. Like Ray Dalio, I had to look back in history for periods when this has happened before. And for that, we would look at the 1970s (Post Bretton Woods) and the 1990s (Pre-1996s Crossover). If seeing is believing, then let’s see this chart. Figure 1. Gold vs U.S. Treasuries historical crossover I may have referenced Google Gemini as a data source, but rest assured, the data comes from a variety of sources such as reuters.com, fxstreet.com, etc. I just couldn’t claim the credits to be honest. 1970s:  So, back in the 1970s, we had a gold rush when the US ceased the convertibility of dollars into gold. What happened was a spike in inflation to as high as 13.5% as many flocked to gold as a hedge against inflation. This was not the only reason for gold accumulation by centra...