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š Gold Surpasses Euro as the World's Second-Largest Reserve Asset
According to the latest ECB report, gold officially overtook the euro by the end of 2024, accounting for 20% of global official reserves, compared to just 16% for the euro. The U.S. dollar remains dominant at 46%, but this marks a turning point for the global monetary system.
š Whatās driving this gold surge?
ā Aggressive central bank buying: In 2024 alone, central banks purchased 1,045 tonnes of gold, continuing the trend of over 1,000 tonnes annually since 2022. Poland led with 90 tonnes, followed by Turkey, India, and China.
ā Gold price surged nearly 62%, reaching a peak of $3,509.90/oz in April 2024, significantly boosting gold's market value in reserve portfolios.
ā Geopolitical tensions, economic sanctions, and dedollarization have made gold the preferred āglobal vaultā ā a physical asset immune to Western financial controls.
š„ Impacts to watch:
1 - Gold prices could remain high, sustained by central bank demand, though a potential slowdown (especially in China) might trigger corrections.
2 - Euro could face depreciation pressure if central banks continue reallocating reserves into gold.
3 - A shift toward a multipolar reserve system is forming, with gold playing a more central role and challenging the dollarās long-term supremacy.
4 - Stronger financial safety for gold-heavy nations: Countries like China and India may be better shielded during future crises thanks to goldās liquidity and universal acceptance.
5 - Institutional and retail investors may follow suit, as central banks set the tone for goldās role as a safe-haven asset amid global instability.
š A 2024 survey by the World Gold Council shows 29% of central banks plan to increase their gold reserves in the next 12 months (through April 2025) ā reinforcing the trend toward a "golden era" in reserve strategy.
#gold #globalreserves #centralbanks
According to the latest ECB report, gold officially overtook the euro by the end of 2024, accounting for 20% of global official reserves, compared to just 16% for the euro. The U.S. dollar remains dominant at 46%, but this marks a turning point for the global monetary system.
š Whatās driving this gold surge?
ā Aggressive central bank buying: In 2024 alone, central banks purchased 1,045 tonnes of gold, continuing the trend of over 1,000 tonnes annually since 2022. Poland led with 90 tonnes, followed by Turkey, India, and China.
ā Gold price surged nearly 62%, reaching a peak of $3,509.90/oz in April 2024, significantly boosting gold's market value in reserve portfolios.
ā Geopolitical tensions, economic sanctions, and dedollarization have made gold the preferred āglobal vaultā ā a physical asset immune to Western financial controls.
š„ Impacts to watch:
1 - Gold prices could remain high, sustained by central bank demand, though a potential slowdown (especially in China) might trigger corrections.
2 - Euro could face depreciation pressure if central banks continue reallocating reserves into gold.
3 - A shift toward a multipolar reserve system is forming, with gold playing a more central role and challenging the dollarās long-term supremacy.
4 - Stronger financial safety for gold-heavy nations: Countries like China and India may be better shielded during future crises thanks to goldās liquidity and universal acceptance.
5 - Institutional and retail investors may follow suit, as central banks set the tone for goldās role as a safe-haven asset amid global instability.
š A 2024 survey by the World Gold Council shows 29% of central banks plan to increase their gold reserves in the next 12 months (through April 2025) ā reinforcing the trend toward a "golden era" in reserve strategy.
#gold #globalreserves #centralbanks
EU's Seizure of Russian Assets: Threat to Euro's Reserve Currency Status
Potential Consequences of Confiscating Russian Assets
The confiscation of frozen Russian assets could have catastrophic consequences, including a loss of trust in the global financial system, destabilization of the euro, and potential harsh retaliatory measures from Russia. These concerns were raised by Euroclear, the Belgian clearinghouse responsible for holding the majority of the frozen assets of Russia's central bank.
Euroclear Warns of Legal and Financial Risks
ValƩrie Urbain, CEO of Euroclear, expressed concerns about the risks and liabilities associated with the potential confiscation of Russian assets. She emphasized that if the EU decides to take this step, the associated liabilities must be addressed:
āWe cannot be in a situation where assets are confiscated, and a few years later, Russia comes back and demands the return of its securities while the assets no longer exist.ā
Urbain added that any confiscation must include addressing all associated liabilities; otherwise, it could seriously undermine the credibility of the European financial system.
Funding Ukraine and Geopolitical Tensions
The EU has so far used profits from frozen Russian assets to finance aid to Ukraine, including a ā¬50 billion loan package approved by the Group of Seven (G7). However, discussions about fully seizing ā¬180 billion worth of assets held by Euroclear have resurfaced, particularly amid uncertainties about future U.S. support for Ukraine under a potential Donald Trump administration.
Russia has condemned these actions as theft and a violation of international norms. The Kremlin has also threatened retaliatory measures, including nationalizing Western assets in Russia. This situation is exacerbating geopolitical tensions between Russia and Western powers, with frozen assets becoming a focal point of conflict.
Threat to Trust in the Euro and the Global System
Euroclear's CEO warned of broader implications that could jeopardize the euro's status as a reserve currency. She noted that such a precedent could erode trust among central banks worldwide:
āThe trust built over decades could suddenly be called into question.ā
If central banks perceive that their assets are no longer protected under established legal frameworks, it could disrupt global economic relationships and financial stability.
Increased Activity in Asia and the Middle East
Urbain also noted heightened trading activity in Asian and Middle Eastern markets. While she stated that the current situation does not pose an immediate threat, the potential confiscation of assets could have long-term consequences for the global financial system:
āIf confiscation happens, everything is up in the air,ā she concluded.
#CryptoNewss , #Russia , #CentralBanks , #Cryptocurrencies ,#CryptoNewsCommunity
Stay one step ahead ā follow our profile and stay informed about everything important in the world of cryptocurrencies!
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.ā
The confiscation of frozen Russian assets could have catastrophic consequences, including a loss of trust in the global financial system, destabilization of the euro, and potential harsh retaliatory measures from Russia. These concerns were raised by Euroclear, the Belgian clearinghouse responsible for holding the majority of the frozen assets of Russia's central bank.
Euroclear Warns of Legal and Financial Risks
ValƩrie Urbain, CEO of Euroclear, expressed concerns about the risks and liabilities associated with the potential confiscation of Russian assets. She emphasized that if the EU decides to take this step, the associated liabilities must be addressed:
āWe cannot be in a situation where assets are confiscated, and a few years later, Russia comes back and demands the return of its securities while the assets no longer exist.ā
Urbain added that any confiscation must include addressing all associated liabilities; otherwise, it could seriously undermine the credibility of the European financial system.
Funding Ukraine and Geopolitical Tensions
The EU has so far used profits from frozen Russian assets to finance aid to Ukraine, including a ā¬50 billion loan package approved by the Group of Seven (G7). However, discussions about fully seizing ā¬180 billion worth of assets held by Euroclear have resurfaced, particularly amid uncertainties about future U.S. support for Ukraine under a potential Donald Trump administration.
Russia has condemned these actions as theft and a violation of international norms. The Kremlin has also threatened retaliatory measures, including nationalizing Western assets in Russia. This situation is exacerbating geopolitical tensions between Russia and Western powers, with frozen assets becoming a focal point of conflict.
Threat to Trust in the Euro and the Global System
Euroclear's CEO warned of broader implications that could jeopardize the euro's status as a reserve currency. She noted that such a precedent could erode trust among central banks worldwide:
āThe trust built over decades could suddenly be called into question.ā
If central banks perceive that their assets are no longer protected under established legal frameworks, it could disrupt global economic relationships and financial stability.
Increased Activity in Asia and the Middle East
Urbain also noted heightened trading activity in Asian and Middle Eastern markets. While she stated that the current situation does not pose an immediate threat, the potential confiscation of assets could have long-term consequences for the global financial system:
āIf confiscation happens, everything is up in the air,ā she concluded.
#CryptoNewss , #Russia , #CentralBanks , #Cryptocurrencies ,#CryptoNewsCommunity
Stay one step ahead ā follow our profile and stay informed about everything important in the world of cryptocurrencies!
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.ā
šØš Swiss National Bank Chief says NO to #Bitcoin reserves (for now), citing volatility risks.
š Will other central banks follow suit or embrace digital assets?
$BTC #CentralBanks #CryptoNews #Finance
š Will other central banks follow suit or embrace digital assets?
$BTC #CentralBanks #CryptoNews #Finance
Peter Schiff STRIKES BACK ā Slams Bitcoin as Central Banks Bet on GOLD
In a fiery post on X, renowned gold advocate Peter Schiff threw down the gauntlet:
> āIf gold is the past and Bitcoin is the future, why are global central banks dumping dollars for goldānot BTC?ā
As central banks in China, Russia, India, and beyond hoard tons of gold, Schiff's challenge hits hard. If Bitcoin is truly the next global currency, why is gold winning the trust war?
This isn't just rhetoric. It's a reality check.
While BTC believers hail crypto as the ultimate store of value, governments are doubling down on goldāthe age-old safe haven against inflation, geopolitical chaos, and dollar decline.
Is Bitcoin being ignored by the very institutions preparing for a post-dollar world?
Or is gold simply too deeply entrenched in the foundation of global finance?
The battle for monetary supremacy is heating upāand Schiff just raised the stakes.
#PeterSchiff #CryptoClash #MarketPullback #CentralBanks #Write2Earn
> āIf gold is the past and Bitcoin is the future, why are global central banks dumping dollars for goldānot BTC?ā
As central banks in China, Russia, India, and beyond hoard tons of gold, Schiff's challenge hits hard. If Bitcoin is truly the next global currency, why is gold winning the trust war?
This isn't just rhetoric. It's a reality check.
While BTC believers hail crypto as the ultimate store of value, governments are doubling down on goldāthe age-old safe haven against inflation, geopolitical chaos, and dollar decline.
Is Bitcoin being ignored by the very institutions preparing for a post-dollar world?
Or is gold simply too deeply entrenched in the foundation of global finance?
The battle for monetary supremacy is heating upāand Schiff just raised the stakes.
#PeterSchiff #CryptoClash #MarketPullback #CentralBanks #Write2Earn
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