In the first quarter of 2018 demand for gold was up a whopping 42% year on year - according to the World Gold Council. It seems that most of the buying has come from central banks who - in 2010 - transitioned into being net sellers of gold to become net buyers of the yellow metal.
It is not yet clear why some central banks around the world have started to raise their gold reserves. One theory is that many emerging economies and fringe countries are trying to move away from the US dollar to end its status as the world's reserve currency.
After all, Russia and China have been very active in gathering support from global governments into creating a new gold-backed currency. With a frosty relationship developing between China and the US due to ongoing trade tariff disputes, many investors have diversified their portfolios to include gold - such as the world's biggest hedge fund manager Ray Dalio founder of the investment firm Bridgewater Associates and 69th richest person in the world with net worth of $15.2 billion according to Forbes.
