Gold is really magical. For thousands of years, whether dynasties change, currency depreciation, or wars are in full swing, it has been stable there. In addition, it is shining heavily, so people naturally link it to stability. Because it is not printed paper, nor is it a virtual code in the computer, it is a real hard currency.
The global financial crisis in 2008 is still vivid in my mind: the stock market collapsed so much that my parents refused to recognize it, and the banks collapsed as soon as they said it. The wealth of many people was wiped out overnight, but at this critical moment, gold not only did not fall, but instead rushed up against the trend. Why? When all the wealth on paper becomes waste paper, when the so-called steady investment evaporates instantly, people are frightened to find that only gold that can be held in their hands and seen and touched can also give them a sense of security. This is its magic and its foundation that has never fallen through storms - it is the last visible line of defense in the era of panic.
When it comes to gold reserves, the United States is definitely the number one player. There are a total of 8,133 tons of gold in their treasury. This number is a global leader in faults. But how did this mountain of gold and silver come from? It is quite intriguing to think about it carefully. During the two world wars, Europe was sieve, the wallet was hollowed out, and gold flowed out.
The United States is different. Not only did it not get bombed, but instead, it relied on selling arms and making money in war, quietly sucking the gold flowing out of Europe into its pocket. After the war, the United States transformed into the largest creditor, holding most of the world's gold in its hands. So the Bretton Woods system came into being: the US dollar was directly linked to gold. This move was too ruthless and directly sent the US dollar to the throne of the world's currency. International trade? OK, settle with US dollars! Global reserves? OK, stock up on US dollars! The United States has firmly grasped the lifeblood of global finance through the gold accumulated by war. Although the United States could not hold on in 1971 and announced that the US dollar and gold would be decoupled (to put it bluntly, it was because it printed too much money and was not enough to redeem), the 8,133 tons of gold's assets are still the greatest confidence for it to be rampant in the global financial industry. Does this count as a war bonus?
However, Feng Shui turns. Over the years, Russia has made a fortune in the gold market: I remember that when the Soviet Union collapsed in the 1990s, the gold reserves in the Russian treasury were pitifully small. But by the end of 2023, they saved up 2,350 tons, ranking fifth in the world. If you ask why it is so fast, it is full of blood and tears. Because I was scared by Western sanctions. Thinking about the money from European and American banks in Russia, people would freeze it if they said they would freeze it, and confiscate it if they said they would confiscate it. There was no room for bargaining. Russia then learned from its mistakes: rely on the US dollar? Rely on the euro? All of them are meat from other people’s chopping boards! Gold is different. If you put this thing at home, no one can take it away. It does not recognize you as a country, it only recognizes itself as gold. Therefore, Russia has launched a crazy gold-storage model, which can reduce its dependence on the US dollar, and can earn more say and less in the global financial game. This move is also a helpless move.
Look at China, the world's second largest economy, and we also understand the importance of gold. But we have always been implicit and restrained, unlike the United States and Russia, so we choose to develop in a low-key manner. The latest data (July 2024) shows that our official gold reserves are 2,264 tons, ranking sixth in the world. Although the numbers are much worse than the United States and Russia, the trend has been rising steadily. Not being ostentatious or hype is just moving home silently. This kind of pragmatism is the best choice against the backdrop of the instability of the global financial situation.
Moreover, China's love for gold is even more engraved in its bones. In 2013, international gold prices plummeted, and the financial giants on Wall Street were busy shorting and buying money. As a result, the Chinese aunts took action! They rushed into the gold shop and rushed to buy gold bars and jewelry like buying cabbage, and forced the falling gold price to lift the price. The Wall Street elites who were waiting to get a bargain were also surprised. Some people estimate that the total amount of gold scattered in the hands of our Chinese people may be between 12,000 and 16,000 tons. For ordinary Chinese, gold is not only an investment, but also a sense of security for real wealth that has been passed down for thousands of years.
The voices of gold being eliminated have never stopped, but the reality is different. The 2008 financial crisis is an example: when all virtual assets plummet, gold must be reliable at critical moments. Its core value lies in this: when the market is not good, it can give people an anchor that can be grasped and will not disappear. This sense of security is irreplaceable to any emerging digital currency. Bitcoin may soar, and even national credit may go bankrupt, but as long as everyone recognizes its value, it will not be eliminated.
In the environment where digital currencies are becoming more and more popular in the future, part of the light of gold may be separated, and even newer safe-haven assets will appear, but gold will never disappear. It has been repeatedly proved by history that when the financial system is shaking, the most trustworthy thing is still gold. It may not make you rich, but it can ensure that you will not have nothing at the worst moment. This sense of stability is precisely the most irreplaceable thing about gold in today's uncertainty. When those hotly speculated virtual currency accounts faced a night of zero, the heavy gold bars were still shining silently.
