Gold Bubble: Economist Urges Central Banks to Sell Their Bullion

Willem Buiter, former member of the Bank of England’s Monetary Policy Committee, has warned that gold prices have entered “bubble territory,” urging central banks to sell their holdings. With gold trading above $4,000 an ounce, he argued its true value is “virtually nonexistent.”

Source Financial Times

Buiter described gold as a “faith-based asset,” comparing it to Bitcoin in its reliance on investor psychology rather than intrinsic worth. He said the majority of demand comes from speculation rather than industrial or jewelry use.

According to Buiter, central banks are perpetuating a misguided belief in gold’s safety by hoarding it as a store of value. He urged them to liquidate reserves, calling gold “a costly and unproductive relic” with no place in a modern, efficient financial system.