Gold’s Glamour & Bitcoin’s Bid ✨

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It has come to one’s attention, through the most reliable of reports, that central banks across the globe have been exhibiting a most peculiar fondness for gold of late. Indeed, October of the year 2025 witnessed a remarkable flurry of purchasing – no less than 53 tons! – a figure which analysts assure us is the highest of the year. One suspects a good deal of fretting over inflation, declining currencies, and the tiresome business of geopolitical risk is to blame. 🙄

Central Bank Buying Surges

The newspapers are quite abuzz with figures, stating that 2025 stands to be the fourth most enthusiastic year this century for institutional gold accumulation. Deutsche Bank, a name of some consequence, informs us that gold now accounts for approximately 24% of central bank reserves, a proportion not observed since the days of the nineteen-nineties. Such figures naturally explain why governments, having briefly entertained other notions, are now returning to the tried and true. It seems a prudent, if rather predictable, course of action.

Bitcoin Enters The Conversation

And now, quite unexpectedly, Bitcoin finds itself thrust into the conversation! Certain banking gentlemen, and those who engage in market research – a profession one views with a degree of skepticism – are beginning to wonder if this digital curiosity might serve a similar purpose for national treasuries. Deutsche Bank, in a display of rather bold prediction, suggests that Bitcoin could grace the balance sheets of central banks by the year 2030, acting as a…supplementary reserve asset. One can only imagine the clerks’ confusion! 🤭

Central banks are ramping up gold purchases:

Global central banks purchased +53 tonnes of gold in October, the most since November 2024.

This marks a +194% jump compared to July, and the 3rd-straight monthly acceleration.

In the first 10 months of the year, central banks have…

– The Kobeissi Letter (@KobeissiLetter) December 4, 2025

It appears Bitcoin’s reputation is undergoing something of a transformation. Liquidity is improving, and the price fluctuations are, relatively speaking, less…dramatic. Though still prone to volatility, it recently reached a most astonishing figure – above $123,500! – arresting the attention of all who follow such matters.

A Few Banks Are Testing The Idea

A select few central banks are, it is said, giving the matter ‘serious consideration.’ The Czech National Bank, ever the experimentalists, are contemplating a ‘test allocation,’ simply to observe how this ‘crypto’ behaves within a reserve portfolio. Their deliberations, predictably, focus on the mundane matters of custody, accounting, and the proper recording of gains or losses – a far cry from actually buying any, one imagines.

On Gold & Bitcoin: Why Officials Are Cautious

Naturally, risk is the primary impediment. Bitcoin, it seems, still possesses a tendency towards larger price swings than those to which central bankers are accustomed. Furthermore, the rules governing the holding and auditing of such digital assets remain…imprecisely defined. According to those deemed ‘experts,’ regulators and auditors require ‘clear guidance’ before allowing it near official reserves. Truly, a most tiresome requirement! 😒

What This Could Mean For Markets

Should even a modest number of national banks deign to allocate a portion of their reserves to Bitcoin, one anticipates a surge in demand, and a corresponding shift in market perception. It would not, of course, supplant gold or the American dollar, but might provide a modest hedge against currency weakness or inflationary pressures. Such a move would also necessitate a considerable expansion of custody and compliance services – a prospect certain to delight those in those professions. ✨

The enthusiastic purchasing of gold by central banks is already well underway – 53 tons in a single month, and upwards of 24% of reserves held in gold by some – and that Bitcoin is even being considered as a potential future investment! The journey from discussion to adoption remains uncertain, fraught with technical and legal difficulties. Yet, the debate has advanced from mere speculation to preliminary trials and official reports, making it a matter of considerable interest within the financial world. One wonders what the future holds…

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2025-12-06 07:15