Morgan Stanley believes there are four main pillars that gold’s bull market will rely on to climb higher.
"As the financial markets remain in turmoil, central banks and investors will turn to gold as a hedge against the wall of worry facing the world. Earlier this year, Venezuela’s central bank received its last shipment of gold bars in a move that repatriated 160 tonnes of the precious metal held abroad. Apparently, with Greece and other countries teetering on the edge of the financial cliff, Germany is becoming increasingly concerned with its own gold reserves. According to German newspaper Bild, German lawmakers are planning to review Bundesbank controls of and management of Germany’s gold reserves. GoldCore reports, “There is increasing nervousness amongst the German public, German politicians and indeed the Bundesbank itself regarding the gigantic risk on the balance sheet of Germany’s central bank and this is leading some in Germany to voice concerns about the location and exact amount of Germany’s gold reserves.” According to the latest data from the WGC, Germany holds nearly 3,400 tonnes of gold, representing 71.4 percent of its reserves. It is believed that more than half of Germany’s gold is held in storage facilities outside of the country, in places such as the Federal Reserve Bank of New York."