Contact us
CALL US NOW 1-888-GOLD-160

Dutch Gold Is Another Vote Against US Financial System

  by    0   0

This post was submitted by Erik Oswald, SchiffGold Precious Metals Specialist.

While financial commentators continue to bash gold as an asset that produces nothing and should be left to the pages of history, the real story of the gold market is found at the macro economic and fundamental level. Central banks the world over have been net buyers of physical gold since 2011. On top of this, many sovereign nations have been requesting and taking delivery of their gold holdings from the New York Federal Reserve and London, where a majority of central banks’ gold holdings are stored.

14 11 21 Goldvault_nyc

Major news hit today on this front. The Netherlands has become the most recent Western European nation to take delivery of their physical holdings from the NY Fed. The Dutch central bank located in Amsterdam has increased its domestic holdings of physical bullion from 11% of total gold reserves to 31%. The official domestic Dutch gold horde has increased from about 67 tons to nearly 190. While this number is small in comparison to the reserves held by countries like China, Russia, and (allegedly) the US, the act of removing physical bullion from an international depository and returning it to the country of origin represents yet another vote of no confidence in the US financial system.

While financiers and those with a particular economic view point abhor gold, lay people the world over want their nations gold close. In fact, that’s precisely what the Dutch central bank said about its gold repatriation – it is supposed to have “a positive effect on public confidence.” That’s because trusting the Fed and the US financial system to safeguard a nation’s physical bullion holdings is like leaving the fox in charge of the hen house. Read the full story from the Wall Street Journal:

The Dutch central bank said Friday it is repatriating some of its gold reserves from the U.S., making it the latest central bank in Europe to address public concerns about the safety of its gold.

De Nederlandsche Bank, or DNB, said it is moving some of its reserves of 612 metric tons back to the Netherlands in an effort to spread its gold stock in ‘a more balanced way.’ The measure could have ‘a positive effect on public confidence,’ it said.

The goal is to keep 31% of its reserves at the central bank’s vaults in Amsterdam, compared with 11% previously. As a result, the central bank’s gold reserves held at the New York Federal Reserve will fall to 31% from 51%. Dutch gold held at central banks in Canada and the U.K. will remain unchanged at 20% and 18%, respectively.”

Get Peter Schiff’s latest gold market analysis – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning more about physical gold and silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!

Related Posts

The Air Is Coming Out of the Housing Bubble

The Fed has barely started raising interest rates but the air is already seeping out of the housing bubble. New single-family home sales plunged by 16.6% from March and were down 26.9% year on year. New home sales dropped to the lowest level since the lockdown in April 2020.


Retailers Getting Hammered By Rising Costs

Retail sales have spiked over the last few months. You would think that would be great news for retailers, right? Not so fast.


Surge in Government Tax Receipts Papers Over Federal Spending Problem

With a surge in April tax receipts, the federal government ran a record budget surplus last month. This seems like good news. And the mainstream spun it as such. But record government revenue is papering over a spending problem that isn’t going away.


ETFs Add More Gold in April; Total Holdings Just Shy of Record

Gold-backed ETFs saw net inflows of gold for the fourth straight month in April. ETFs globally added 42.8 tons of gold to their holding, with Europe-based funds leading the way.


Americans Are Using Plastic to Make Ends Meet as Prices Continue to Rise

Americans are feeling the pinch of inflation. Wages are up but consumers are worse off. Average hourly earnings have risen by 5.5% over the last year. But factoring in rising costs, real earnings are down 2.6%. So, how are Americans making ends meet? They’re charging it.


Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Call Now