Is the World Bank, which is over the IMF, signaling a return to the gold standard or gold being held as a global trade currency? What exactly is the purpose of the World Bank discussing gold and gold’s place in the global monetary system?
It’s not news that we would love to see gold used in some capacity as currency. Ideally, we would love to see gold monetized and set free. It almost sounds and feels as if the World Bank is leaning in that direction as well.
We had a lengthy conversation with the architect of the SDR, Dr Warren Coates back in 2016 about gold playing a role in todays monetary system. Dr. Coates pointed to the Chatham House [a global banking cabal “think tank”] report, that I had sent to him, which was produced in 2011 on the importance of gold. This report pointed to gold’s overall role in the monetary system and why it would be advantageous for gold to be used as an anchor for a national currency – read all about it here – Killing The Reserve Currency and Creating a Global Unit of Account
The latest report from the World Bank, in my opinion, shows interest in gold just as they have been doing more and more over the past several years.
Central banks bought more gold in 2018 than at any time since the early 1970s – and the trend has continued this year. Isabelle Strauss-Kahn, Member of the Advisory Board of the World Gold Council, former Director of Market Operations at the Banque de France and former Lead Financial Officer at the World Bank, explains why.
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The dollar is the most widely held reserve asset but, according to International Monetary Fund statistics, gold comes third, accounting for 11% of global reserves. Having been net sellers until 2000, central banks have been net buyers ever since. In 2018 alone, central banks bought 651 tonnes of gold, up 74% compared to 2017 and the highest level since 1971. Over the past decade, central banks have purchased more than 4,300 tonnes of gold, taking their total holdings to around 34,000 tonnes today. The trend has continued in 2019, with net purchases reaching 90 tonnes before the end of the first quarter.
Notably too, central bank buying has been geographically diverse. Russia has been the most committed purchaser of gold – acquiring almost 275 tonnes in 2018, the largest amount ever purchased in a single year. China has been consistently adding to its reserves as well, but many other emerging market countries have been accumulating gold over the past year and more, including Hungary, Poland, Egypt, Kazakhstan and India. – Continue Reading World Gold Council report by Isabella Strauss-Kahn
With gold being held by so many national / central banks and being 11% of global reserves it seems there should be some serious questions as to why this is. Why is gold the 3rd most held reserve by national / central banks? Good question. Seems we need some answers about gold returning to the monetary system and being used openly for both global and local trade.
