Tether's Gold Buying Spree Outruns Central Banks

Since Q2 2023, one private company has been buying physical gold at a pace that outruns almost every central bank on earth. The company is Tether, and its buying spree has significant implications for gold demand.

A gold-backed stablecoin works by pegging the value of a digital currency to the price of gold. This allows users to hold gold without physically storing it, providing a convenient and liquid way to invest in gold. Tether's buying is price-insensitive by design, meaning its purchases are not influenced by market fluctuations.

This has led some to wonder what it means for gold demand. Adrian Day was interviewed about the topic, but his views were not specified in the source.