Over the last couple of years, we’ve been reporting on efforts to remove the US dollar from its throne as the world reserve currency. We’ve primarily seen moves toward de-dollarization from countries like China and Russia, and other nations within their orbits. It’s easy for Americans to dismiss efforts to undermine the dollar as desperate moves by their enemies that will never gain any kind of international traction. But now we’re beginning to hear the same de-dollarization rhetoric from American allies.
Earlier this week, German foreign minister Heiko Maas called for the creation of a new payments system independent of the United States.
The classic image of this is the scene from the Christmas-season film It’s a Wonderful Life, with Jimmy Stewart. We’ve all seen it. Now, something similar is happening at the Federal Reserve Bank of New York. What’s different is that the run on the bank involves gold, not cash. The New York Fed will never run out of cash because they can print all they need. But they could run out of gold.”
The Germans are showing off their gold.
The country ranks second in the world only to the US in official gold holdings. This week, the Bundesbank launched a six-month exhibition on gold showcasing its reserves along with the bank’s most interesting gold bars and coins. The official exhibit is part of a renewed emphasis on the yellow metal in Germany.
Over the last several years, a number of countries have taken steps to bring their gold home.
You can now add Hungary to that list.
Global gold-backed ETFs increased their holdings by 197.5 tons in 2017, an increase of 8.4% in global assets under management, according to the World Gold Council.
Globally, gold-backed ETFs collectively held 2,363 tons of gold at the end of 2017, valued at $98.1 billion.
There are signs that December was a strong month for global gold demand.
Gold exports from Australia surged from August to September, according to data released by the Australian Bureau of Statistics (ABS).
Non-monetary gold exports rose 17% in the period, an increase of $217 million in seasonally adjusted terms.
We talk a lot about India’s love affair with gold. The Asian nation ranks as the second largest gold consumer in the world, behind only China. Gold is intimately intertwined with Indian cultural and marriage rights, and it serves as a vital cog in India’s economy, both above ground and underground. But the yellow metal has a new lover vying for its attention.