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Your Money. Personal Finance. Your Practice. Popular Courses. Gold Investing in Gold. Commodities Gold. Key Takeaways No contemporary government requires all of its money to backed by gold, but governments still store huge amounts of bullion, measured in terms of metric tons, as a failsafe against hyperinflation or another economic calamity. The United States holds the largest stockpile of gold reserves in the world by a considerable margin at over 8, tons.
The U. Russia overtook China as the fifth-largest holder of gold in Article Sources. Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.
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Related Articles. Macroeconomics How the U. Dollar Became the World's Reserve Currency. Macroeconomics When Did Globalization Start? Oil How Petrodollars Affect the U. Governments in Europe, including those in Great Britain and Switzerland, have sold off some of their gold in the past much of it near the bottom of the market 13 years ago. I confess I am a gold agnostic—neither a confirmed skeptic, nor a true believer. I try to keep an open mind. I do see some value in owning it, since in the past it has often tended to do well when other assets, such as stocks and bonds, have done badly.
It's not as tough as it was last year to get a refi, but that doesn't mean you should do it. Brett Arends is an award-winning financial writer with many years experience writing about markets, economics and personal finance. He has received an individual award from the Society of American Business Editors and Writers for his financial writing, and was part of the Boston Herald team that won two others.
ET By Brett Arends. Is it time to consider a refi? I rebuilt my life after hitting rock bottom at My estranged daughter says she only wants my money and jewelry. These concerns reached a peak as the European Union struggled with its debt crisis and confidence in the euro eroded. A second reason central banks hold gold is to balance their portfolios. For example, Asian central banks hold enormous reserves in dollar-denominated assets.
If the dollar falls in value, the value of their reserves falls in tandem. Better to diversify by spreading their reserves among other assets. Gold has been central bankers' asset-of-choice as an alternative to the dollar and today, when the dollar falls, gold usually rises.
This is one reason I think gold will enter another bull run. As I said, Asian reserves are huge, the vast majority of which are held in dollars. They have strong incentives to diversify their portfolios and gold is really their only alternative. This shift by Asian central banks from dollars to gold is already occurring.
It will continue and is likely to accelerate if or when the dollar begins a sustained fall. But the central banks are likely to proceed carefully over many years in order to avoid huge sums of dollar-denominated assets hitting the market at once, causing a tailspin in the value of their reserves.
This move out of dollars into gold will drive gold prices higher for years to come as gold demand rises and as the value of the dollar falls. I think this shift will be gradual, but if for some reason, the Asian banks were to move more aggressively, the effect on gold prices would be immediate and dramatic.
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