Written by Jan Nieuwenhuijs of Voima,
It was long believed in the gold space that Western central banks are against gold, but things have changed, for quite some years now. Instead of discouraging people from buying gold, or convincing them that gold is an irrelevant asset, many of these central banks are increasingly honest about the true properties of this monetary metal. Stating that gold is the ultimate store of value, that it preserves its purchasing power through time and is a global means of payment. Such statements, combined with actions that will be discussed below, reveal that more and more central banks are preparing for plan B.
The Bundesbank (the German central bank) published a book last year named Germany’s Gold. In the introduction, written by the President of the Bundesbank Jens Weidmann, the view of this bank leaves no room for interpretation. Weidmann writes (emphasis mine):
Ask anyone in Germany what they associate with gold and, more often than not, they will say that it is synonymous with enduring value and economic prosperity.
Ask us at the Bundesbank what our gold holdings mean for us and we will tell you that, first and foremost, they make up a very large share of Germany’s reserve assets ... [and they] are a major anchor underpinning confidence in the intrinsic value of the Bundesbank’s balance sheet.
The Bundesbank produced this publication to give a detailed account, the first of its kind, of how gold has grown in importance over the course of history, first as medium of payment, later as the bedrock of stability for the international monetary system.
Finally got my hands on an English copy of Gold, published by the German central bank. Something tells me the Bundesbank is pro gold.— VoimaGold.com (@JanGold_) March 27, 2019
‘Gold is the bedrock of stability for the international monetary system.’ pic.twitter.com/CzF4XJDr0c
Central Banks and Exter’s Pyramid
Remarkably candid stance on gold by Dutch central bank:— VoimaGold.com (@JanGold_) April 29, 2019
'Gold is the perfect piggy bank – it's the anchor of trust for the financial system. If the system collapses, the gold stock can serve as a basis to build it up again.'
The eurosystem can collapse. https://t.co/8cBH24K6WS pic.twitter.com/zXPIl9EvUl
Preparing for Plan B