This is a sign that people are losing faith in cash and heralded a coming crisis or just the reaction of those who still believe foresight is a foreign currency gold safest?
The central banks around the world are scrambling to hoard gold, while many European countries require trustees gold recovery abroad.
This is a sign that people are losing faith in cash and heralded a coming crisis or just the reaction of those who still believe foresight is a foreign currency gold safest?
Last month 11/2014, Netherlands quietly moved 120 tonnes of gold from Amsterdam to the US about “giving the public trust.”
Thus, nearly 33% of the gold reserves of the Central Bank of the Netherlands (DNB) is now “sleeping” on the territory of the country.
Before the Netherlands, Germany in 2013 and announced plans to “repatriate” the majority of the national gold reserves are in the warehouses of the US Federal Reserve System (Fed).
But other than Amsterdam, Berlin had to put aside the 300 tonnes of gold in total 1,500 tons are stored in New York State for diplomatic reasons.
Gold – safety reserves
Just a few years ago, gold had been considered “obsolete” but since the financial crisis occurred in the area use the common European currency (euro), the central bank has expressed concern to the type This precious metal than ever.
In general, the central bank is controlled 1/5 volume of world gold since 1973 though, the gold standard mode has been removed.
According to the World Gold Council (WGC), the central bank bought 500 tonnes of gold in 2013, a record since 1964, to diversify reserves, including foreign exchange, bonds, stocks Real estate …
According to observers, the 2013 record will pass this year, after the first 10 months of 2014, the Eastern European countries scrambling to buy gold.
Russia has joined in and holds the highest number of gold from 1993 to date (about 1,090 tons).
Gold prices are constantly rising since the financial crisis of 2008 to the end of 2013.
The dollar until 2013 remains “soft cost” versus the euro. Interest rate bonds issued by the US government, and despite the relatively low trading USD, Euros or US bonds, the interest rate risk low but many.Eurozone economic growth still meager, threatening the country weakest members are excluded from the block is still a “probation.”
With a currency other trusted Europe is the pound, in 2013 and 2014, the currency of England is not attractive to investors, and this makes the central bank hoarding gold rush.
Meanwhile, the International Monetary Fund (IMF) also said in seven consecutive months of January 4/2014, not only Russia but also Kazakhstan bought more gold reserves.
Turkey, Belarus and France and Greece tend to hoard gold.
Currently the Bank of China (PBOC) owns 1,000 tons of gold, ie 1.6% of foreign exchange reserves of the country. But if some of the ideas that real gold reserves of PBOC 3 times higher than the figure on the right, the Chinese gold reserves is the second largest in the world, after the United States (8,000 tons).
For most currencies in the world, no longer a currency that is tied to the metal. But according to Mr. Didier Bruneel – former French central bank (Banque de France) and is the author of ” The Secret of Gold ‘- Gold is “a symbol of power, wealth and still always be regarded as final payment methods are internationally recognized in all cases.
This has been proven through many crises, from the oil crisis until the 1970 international financial crisis in 2008. When the crisis hit, the price of gold was pushed towering.
Prevent hoarding gold Eurozone breakup?
In addition to the central banks scrambling to hoard gold, which is more noticeable at almost the same time so the pressure requirements of the countries in the European recovery of gold being entrusted overseas on increasingly powerful country?
Not only Germany and the Netherlands are interested in national gold reserves. May 5/2014, Austria also require testing gold reserves at home and abroad.
Late last November, the party UDC Swiss referendum requirements for the central bank to inventory and recovery of gold stored in the US, UK and Canada on water.
Why the French National Front party requires Banque de France national inventory of gold, holding gold subjects of France, and fears it may easily mobilized gold to ensure financial stability and economic health in emergency cases or not. Is there some doubts about the viability of a single currency, the euro headed?
Typically, the decision to move the gold kept in place abroad in a confidential manner, such as the Netherlands. Only in Germany, many people questioned why the German Central Bank (Bundesbank) which are very reticent about gold and storage locations, but this time … “brandishing gong” about putting gold on the water.
Does Germany no longer trusted financial partner in the US for sending nearly 50% of national gold stock? Information Bundesbank gold recovery plan in Frankfurt were immediately comment more extensively website and some reviews have said to “not far end of the Eurozone.”
There are articles raises threat shaken Europe, the prospect of England gradually withdraw from the EU. Some other risk aversion from Italy when the policy of Prime Minister Matteo Renzi not revive popular third-largest economy Eurozone.
Some people are more pessimistic that there comes a time when Germany will “flee from the Eurozone” to save themselves, to wear for the European partners is awash in debt.
Meanwhile, economists Gael Giraud of Centre national de la recherche scientifique CNRS said that private debt in the Eurozone is booming and this is the “ticking time bomb” threatening the region.
In summary only for the Eurozone, not too many people see a bright future for this region but all theories about the explosion of the block, whether or not reliable, can not explain why, some countries tend to turn yellow on the water. Simply because if you want to use gold as an international means of payment, then the gold stored in local or foreign totally unimportant.
Keep the yellow “catch” the world back to the gold standard?
Regarding the argument that the dollar is losing its role on the international stage and in the near future will revive the gold standard, ie a nation will “anchor linked” to the domestic currency price of gold, the Experts pointed out at least two reasons to see that scenario can not happen next.
The first gold can only be restored with the consensus of all countries in the world. The second is whether the dollar has lost the role national currency reserves as what happened to the old pound, this also takes place gradually and in that case, the world will increasingly pay attention to the other major currencies, as the euro and yuan.
Experts also think back to the gold standard is impossible for political reasons: Back to the gold standard, that is indirectly given to countries with the largest gold mine in the world such as Venezuela, Russia, China, South Africa, … responsibility “in the money” for the world. It certainly will never happen!
China to accumulate gold coins empower
It is undeniable that far, gold is a symbol of strength and financial stability, economic.
According to the WGC, China in 2013 bought more than 1,000 tons of gold, more than India and in just two years Beijing has bought a gold equivalent to what the French central bank is hiding in stock.
China made no secret ambition to own a gold mountain yuan compete with the dollar.
China reported a holding of more than 1,000 tons of gold, but according to the latest report by the World Gold Council, gold stock of the economy is the world’s second largest proportional position.
In 2.5 years, China has purchased 2,500 tons of gold. Not to mention it is also one of the countries with more gold mine, can produce up to 430 tons / year.
If you closely monitor the financial activities of the Chinese in Hong Kong market, so far China has accumulated nearly 3,500 tons of gold, behind only the US, but ahead of Germany and France.
Market Shanghai Shanghai Gold Exchange Gold only born in 2002, but until now has become the most important markets of the world.
2013, China bought 23% of the world’s gold. Shanghai and Singapore – the two largest gold market in the world are in Asia.
Analysts predict the trend is only 2017, China will overtake the US to control the largest gold reserves of the planet and this is a preparation of leaders in Beijing for the period “Miss dollars.”
According to Les Echos (France) issued on 11.08.2013, the PBOC is gradually replaced with gold reserves of foreign currency in US dollars.
Gold is considered to be more stable and easier to use once the yuan to be converted. When there is no longer any obstacle to RMB USD edges with edge.
Earlier, Xinhua reported that the possibility of “non-dollarization” to yuan increasingly become the payment on the raw-fuel markets of the world. /.
According to AQ
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