With reported gold sales by Russia’s central bank, debate has emerged over whether this could mark the start of a broader retreat in the precious metal – a discussion sharpened by a Chinese celebrity hedge fund manager’s remarks amid recent price volatility.
On Saturday, Li Bei, founder of Shanghai Banxia Investment Management Centre, said “the best days for gold are over” and “signs of a new wave of central-bank gold selling are emerging,” in a post on the company’s official WeChat account.
“Recently, we have seen the Russian central bank start selling gold. Its reserves rank among the top five in the world, exceeding even those of China,” Li said in the post summarising her recent comments.
“I believe this is an important symbolic signal. As a result, I have sold the gold I personally held.”
Li, well-known in China’s investment circles for her pioneering positions in macro hedge funds and her outspoken views, noted that central-bank gold purchases were the most important factor in explaining gold’s long-term price, adding that the recent rally had also been driven by such purchases.
Her comments came amid recent media reports stating the Russian central bank had begun selling gold on its domestic market. However, many experts emphasised that Moscow’s move was largely fiscally driven and did not reflect a broader market trend.
Comments are closed.