With Switzerland’s central bank expecting to record big losses for 2013, it finds itself in a position where it will be unable to pay its usual dividends to the government and shareholders. This has been attributed mainly due to the decline in value of its gold holdings. However, Switzerland is not the only central bank to have taken a hit. Central banks worldwide own a staggering 18% of all the gold ever mined, with Russia increasing its reserves by 20% after prices reached a record $1,921.15 an ounce in September 2011. However, as central banks were busy buying, investors were losing confidence in the metal’s value. Did the world’s top economists at the central banks miss all the warning signs and why were they not rushing to sell? Oren Laurent’s latest article discusses the current situation and gives his verdict on whether this dependence on gold will pay off or not in the future. Read more…