Scrap Register/Ken Rogoff/2-12-2019
“’Emerging market central banks should hold fewer dollars and more gold as a way of diversifying their portfolio. It’s a simple question of diversification. At the moment, most emerging market central banks hold 1–2% of their reserves in gold, with 70–80% in dollars and the rest in euros and other currencies. I think a 5% allocation seems a natural position to take as part of an effective diversification policy – although it could be higher. After all, the US share of the global economy is shrinking, power is being centralised and we don’t know what the future holds,’ he says.”
USAGOLD note: Rogoff sees green cash going the way of the buggy-whip, but he sees an important new role for gold evolving in the process. He has some very interesting things to say about gold and the monetary role it will play in the society of the future at the link above.
