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Just wondering which central bank is the first to conclude that it actually is useless and stupid to keep gold reserves and decides to dump their gold to the ma
by beefield 7y ago
Just wondering which central bank is the first to conclude that it actually is useless and stupid to keep gold reserves and decides to dump their gold to the market first. After which, obviously, we see a crash in gold price rarely seen in the world history. And actually start doing something useful with the unique yellow metal that we collectively have decided that is better to be hidden and not used...
- deleted 7y ago[deleted]
- Animats 7y agoThere was talk of that in the early 2000s. There's a lobby against that, the "World Gold Council".
- dmurray 7y agoThe Bank of England in the 2000s? The Swiss National Bank in the 2000s and again in the 2010s? Central banks sell gold all the time, there isn't some bubble about to burst once a single central bank sells its reserves. Even if the central banks did sell all their reserves, sure, it would be a shock to the gold market and professional commodity traders would notice, but it wouldn't vastly change the availability of gold in the long term. The central banks have maybe 20% of the world's mined gold in their vaults. Most of it is already being used in jewellery or industrial applications.