Global Gold Repatriation Surges Amidst Russian Sanctions

An Invesco survey reveals that an increasing number of countries are repatriating their gold reserves as a safeguard against potential sanctions, following the freezing of almost half of Russia's gold and forex reserves by the West in response to the invasion of Ukraine. Over 85% of sovereign wealth funds and central banks surveyed believe that inflation will be higher in the coming decade, leading them to consider gold and emerging market bonds as attractive investments. Geopolitical tensions and the desire to diversify away from the dollar are also driving central banks to keep reserves at home and explore alternative currencies. Infrastructure projects, particularly those involving renewable energy, are seen as the most attractive asset class, while concerns over China make India an attractive investment destination.