The World’s Gold Is Quietly Leaving London and New York
Quoth the Raven
· QTR’s Fringe Finance
· July 06, 2026 at 12:00
· ⏱ 10 min read
| Read on Substack ↗
Summary
Central banks are repatriating gold from London and New York at an accelerating pace, buying more gold while selling US Treasuries, signaling a long-term shift away from dollar dependence. This trend is bullish for gold and gold miners despite short-term price pullbacks, as the structural catalysts (US fiscal irresponsibility, weaponization of the dollar) remain intact.
•Foreign central bank gold storage in New York fell 17% and in London fell 11% in a single year, while the number of banks bringing gold home nearly tripled.
•Central bank gold purchases have been running at roughly double the historic rate for three consecutive years.
•For the first time since 1996, central banks now hold more gold than US Treasuries, and gold has surpassed both US Treasuries and the euro as the largest reserve asset.
•Central banks are funding gold purchases by selling or not reinvesting maturing US Treasuries.
•Gold recently slipped below $4,000/oz for the first time since November, but the author views this as a buying opportunity given ongoing central bank accumulation.
•The long-term thesis is driven by US fiscal dysfunction, dollar weaponization, and a fractured geopolitical landscape—none of which are reversing.
The article explicitly states that gold mining shares sold off alongside gold, yet at $4,000 gold these companies remain 'enormously profitable' with expanding margins and rising dividends. The struct
The article explicitly states that gold mining shares sold off alongside gold, yet at $4,000 gold these companies remain 'enormously profitable' with expanding margins and rising dividends. The structural central bank buying thesis supports continued gold demand, benefiting the sector as a whole.
Risk: Gold price volatility and operational cost inflation could compress margins if gold reverses.
The article's core argument is that central banks are accumulating gold as a reserve asset, driving long-term demand. This directly supports gold bullion prices. The author views $4,000 gold as a 'rea
The article's core argument is that central banks are accumulating gold as a reserve asset, driving long-term demand. This directly supports gold bullion prices. The author views $4,000 gold as a 'reasonable entry point' for continued buying.
Risk: Short-term price pullbacks could test support levels if retail sentiment turns negative.
The article notes that central banks are funding gold purchases by selling US Treasuries or letting them mature without reinvesting. This structural selling pressure on US sovereign debt is bearish fo
The article notes that central banks are funding gold purchases by selling US Treasuries or letting them mature without reinvesting. This structural selling pressure on US sovereign debt is bearish for long-term Treasuries, implying potential yield increases and price declines.
Risk: If central bank selling pauses or reverses, Treasuries could rally; geopolitical risk could also drive flight to safety.
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