3 ms·
I have an auxilary question. Why don't countries have Gold Embassies around the world? Accounts which can be settled in Bulk (e.g. say $100 million gold equival
by cantor_S_drug 1y ago
I have an auxilary question. Why don't countries have Gold Embassies around the world? Accounts which can be settled in Bulk (e.g. say $100 million gold equivalent size). This way no one country has monopoly on reserve asset.
- kasey_junk 1y agoThey do. Countries frequently store gold with trading partners or allies. Germany for instance has extensive foreign gold reserves.
- cantor_S_drug 1y agoBut then the next question is why aren't those used as settlements mechanism?
- kasey_junk 1y agoThey are? The issue here is simply that the country thinks there is an imbalance. They can request a in country transfer and do, but in this case it’s not enough.
- AnimalMuppet 1y agoBecause international settlement is huge - something like a trillion dollars a day. (Or maybe that's just currency exchange, which might contain speculation in addition to settlement? Or is that a false distinction?) Anyway, moving that much gold would be slow, inconvenient, and a significant risk.