4 ms·

I have no idea of the strategy behind it, but for some reasons italy has a lot of gold despite not buying it since a few decades https://www.bancaditalia.it/com

I have no idea of the strategy behind it, but for some reasons italy has a lot of gold despite not buying it since a few decades https://www.bancaditalia.it/compiti/riserve-portafoglio-rischi/evoluzione-riserve/index.html?com.dotmarketing.htmlpage.language=1&dotcache=refresh https://www.bancaditalia.it/compiti/riserve-portafoglio-risc...

diggan 1y ago
Good idea, no counter-party exposure like if you used USD, and seems to have worked as an inflation/crisis hedge judging by how well Italy did in the euro-crisis ~2008.
OtherShrezzing 1y ago
A huge pile of gold in a secure location allows a government to operate in exile essentially forever without creating substantial debts for the home nation. It's not just "Italy's gold", it's "Contemporary Italy's gold". Norway & the Netherlands moved their gold right before the Nazi invasions in the 40's, and were able to continue operating in exile as a result. Taiwan was established on the back of this tactic too, with the Chinese nationalists moving their gold out of the mainland into Taiwan when they realised they'd lose to the Communists.
- seydor 1y ago
  they could just buy bitcoin.
  - ceejayoz 1y ago
    You are unlikely to open the NY Fed's vault one day to find it suddenly empty. There's a benefit to having your country's wealth being physically difficult to move.
  - lcnPylGDnU4H9OF 1y ago
    Regardless of the other economic aspects, bitcoin is objectively less dependable than gold. One is a network of complex machines, which all require constant power, and the other is rocks in a room.
- Nifty3929 1y ago
  How? You cannot eat gold - and if you're in exile will anybody sell stuff to you?
  - tartuffe78 1y ago
    Your allies who are fighting the Nazis/Communists/whoever will happily sell you anything you want.
  - wavemode 1y ago
    > if you're in exile will anybody sell stuff to you? If we support you and are at war with your occupier then why not?

diggan 1y ago

Good idea, no counter-party exposure like if you used USD, and seems to have worked as an inflation/crisis hedge judging by how well Italy did in the euro-crisis ~2008.

OtherShrezzing 1y ago

A huge pile of gold in a secure location allows a government to operate in exile essentially forever without creating substantial debts for the home nation. It's not just "Italy's gold", it's "Contemporary Italy's gold". Norway & the Netherlands moved their gold right before the Nazi invasions in the 40's, and were able to continue operating in exile as a result. Taiwan was established on the back of this tactic too, with the Chinese nationalists moving their gold out of the mainland into Taiwan when they realised they'd lose to the Communists.

seydor 1y ago
they could just buy bitcoin.
- ceejayoz 1y ago
  You are unlikely to open the NY Fed's vault one day to find it suddenly empty. There's a benefit to having your country's wealth being physically difficult to move.
- lcnPylGDnU4H9OF 1y ago
  Regardless of the other economic aspects, bitcoin is objectively less dependable than gold. One is a network of complex machines, which all require constant power, and the other is rocks in a room.
Nifty3929 1y ago
How? You cannot eat gold - and if you're in exile will anybody sell stuff to you?
- tartuffe78 1y ago
  Your allies who are fighting the Nazis/Communists/whoever will happily sell you anything you want.
- wavemode 1y ago
  > if you're in exile will anybody sell stuff to you? If we support you and are at war with your occupier then why not?