Another Country Wants to Have Its Gold Reserves Closer to Home, Away From England and the US

The system works great if you trust the people storing the gold. If you don’t, better bring it home sooner, rather than later.
Another Country Wants to Have Its Gold Reserves Closer to Home, Away From England and the US
A Swiss gold coin at Numis International Inc. in Millbrae, Calif., Nov. 5, 2014 . AP Photo/Marcio Jose Sanchez
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The problem with gold is that it is hard to store and ship. So economies of scale make sense: You keep a lot of gold in one big vault and once it changes hands you just cart it from one chamber to another.

This system works great if you trust the people storing the gold. So far, the United States, England and Switzerland have enjoyed that trust and most countries store their gold in London, New York, Zurich and also Paris to some extent.
Valentin Schmid
Valentin Schmid
Author
Valentin Schmid is a former business editor for the Epoch Times. His areas of expertise include global macroeconomic trends and financial markets, China, and Bitcoin. Before joining the paper in 2012, he worked as a portfolio manager for BNP Paribas in Amsterdam, London, Paris, and Hong Kong.
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