Since November 2020, the central bank of Uzbekistan (CBU) issues sealed gold bars with a QR-code for real time verification. With these new bars CBU aims to stimulate gold to be used as a store of value, as well as promote the circulation of gold.
More and more governments and central banks around the world are promoting gold as a store of value. Not surprisingly, as gold has proven to preserve its purchasing power over thousands of years, and it’s becoming ever more clear the future of fiat currencies is shaky (yes, central banks are aware of this).
The above statement from the central bank of Italy should be interpreted as a warning: money issued by central banks has counterparty risk and can lose its value, while gold retains its value. The development of central banks promoting gold is a slow shift from plan A (fiat) towards plan B (gold), as I have written about here, here, and here. Read more…..
Chart of the Day
Esther Reichelt, currency strategist at Commerzbank AG, talks about the dollar, the euro, the yen, and central banks’ policies. She also discusses gold with Bloomberg’s Nejra Cehic and Manus Cranny on “Bloomberg Daybreak: Europe.”