With food and oil prices on the rise, central banks usually look to the U.S. dollar to secure the value of their savings. However, according to reports, banks are looking to gold.
What are they buying instead?
The yellow metal hit a fresh record high this morning, while the dollar index dropped to a 15-month low. The news had Fast Money’s Brian Kelly looking to add more gold and silver longs to his portfolio Thursday morning.
“What is working is gold, silver and oil,” said Kanundrum Capital’s Kelly. “I wish I had more.”
Gold and silver have become the inflation hedges of choice for some investors. Gold hit an intra day high today of $1,448 per ounce. Silver is trading at 31-year highs, hitting an intra day high of $38 per ounce.