De Nederlandsche Bank uses gold to prepare itself for a collapsing economic system

Remarkable passage on the website of De Nederlandsche Bank: If the entire system collapses, the gold stock provides a collateral to start over. Gold is the ultimate solution for thirst: the trust anchor for the financial system, according to the DNB.

Wow

Dutch National Bank goes ‘Big Reset’:

‘Shares, bonds and other securities: there is a risk to everything [..] If the entire system collapses, the gold stock provides a collateral to start over. Gold gives confidence in the power of the central bank’s balance sheet. pic.twitter.com/Oi9n7bnAdi

– Willem Middelkoop (@Wmiddelkoop) October 12, 2019

Bitcoin is the start

Once you delve into bitcoin, it is impossible not to be sucked further into the black hole. Many start with the idea of ​​making money quickly, and then start to read. Slowly they realize that bitcoin is more than just fast money. You only understand those insights if you also learn more about what money is, how our economy works and which forces restrict our financial freedom.

The history of money is also discussed during this voyage of discovery. Gold plays a prominent role in that history, certainly also for central banks. But it is quite something if our central bank publicly admits to saving gold as insurance against the collapse of the entire system.

The value of Bitcoin is not that it is the be-all, end-all currency, but that it is a tool that teaches this generation of financial literacy.

– Burak Nehbit (@nehbit) April 17, 2013

All central banks participate

Not only De Nederlandsche Bank is working on this, central banks from all over the world have increased their gold purchases in recent months. Gold has always been part of central bank portfolios, but the importance has only increased. In a world of zero or even negative interest rates, as well as reverse bond yields, gold becomes more attractive as insurance against inflation, bubbles and returns.

The Russian and Turkish central banks have taken the most gold this year. Both countries are also strangely positive about bitcoin and cryptocurrency, at least not as negative as China or India. For both Russia and Turkey, hyperinflation has been experienced in the flesh. Turkey now suffers from a shaky exchange rate for the lira, while Russia went through a period of hyperinflation in the late 90s. This is partly because Russia took on all the debts of the Soviet Union.

Bitcoin and gold rate

The price of bitcoin is historically more dynamic than that of gold, but bitcoin is much more agile. It is not unusual to see bitcoin worth tens of million euros flying over the network. That could just go from a wallet of a European to an Asian or American stock exchange. Try that with gold or fiat money.

Gold and bitcoin are not doing badly in 2019. In January, bitcoin was still worth 3,300 euros. At the moment that is 7,800 euros. A growth of no less than 136 percent. The price of gold is a bit quieter compared to bitcoin, but it also shows absolutely good figures. At the start of 2019, a troy ounce of gold was 1,115 euros. The value has risen by 22.6 percent to 1,367 now.