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GOV/Central banks still use gold as reserves holding. https://en.wikipedia.org/wiki/Gold_reserve https://en.wikipedia.org/wiki/Gold_reserve

• toyg 6y ago
  That’s not “backing”: nobody buys specifically to keep gold prices up or to legitimise the trade, they just use it as a commodity to make their creditworthiness believable and storing their value in a practical way. They are leveraging a pre-existing market, not backing it. (As a side note, this role for gold is clearly legacy: look at how little gold China stores, compared to their overall reserves.)
  • neatze 6y ago
    > their creditworthiness believable this not backing ? > look at how little gold China stores by metric tones china is on 6th place in world, what do you mean ?
    • CRConrad 6y ago
      >>[Governments use gold to make] their creditworthiness believable > this not backing ? It's the opposite. Originally you said "Gold Market is backed by Governments". This is governments being (partially) backed by gold. >> look at how little gold China stores > by metric tones china is on 6th place in world, what do you mean ? Their economy is the largest in the world. How much smaller are their gold holdings, compared to those in first place?