The incoming governor of the Czech National Bank (CNB), Aleš Michl, has said gold is good for diversification because “it has zero correlation with stocks.”
Therefore, under his stewardship, the CNB hopes to increase its holdings of the commodity from the current 11 tonnes to 100 tonnes or even more.
However, this will be done gradually, the incoming governor said.
The new CNB boss, as one report noted, is seemingly following in the footsteps of other European central banks that have either repatriated or bought more tonnes of gold.
For instance, the Hungarian central bank revealed in 2018 that it had grown its gold holdings tenfold while the Polish central bank is reported to have done the same in 2019.
Central Banks globally during 2022 will be net: