Why do the Netherlands have confidence in gold?
1g. 42.41 EUR
1oz. 1319.00 EUR
Price in EUR per kg
Gold Fixing

News


Why do the Netherlands have confidence in gold?
Global InterGold

 

The central bank of the Netherlands (De Nederlandsche Bank/DNB) issued a statement emphasizing the role of gold as the best means of protection against economic threats.

“A gold bar retains its value even in times of crisis. That is why central banks, including DNB, have traditionally held considerable amounts of gold. If the financial system collapses, the gold stock can serve as a basis to build it up again. Gold bolsters confidence in the stability of the central bank's balance sheet and creates a sense of security,” says the official website of the Dutch bank.

 

A small but thrifty country

A state with 17 million inhabitants occupies 68th place in the world in terms of population. Meanwhile, the Netherlands ranks 10th in the world in terms of gold reserves (612 tons).

For 70 years, almost the entire Dutch gold reserve has been stored outside the country. However, in 2014, the kingdom was no longer pleased with that situation. Consequently, 122.5 tons of Dutch gold were transported from New York to Amsterdam.

The Netherlands bank justified the decision, arguing that the international situation had changed after the end of the Cold War*, hence storing gold in another part of the world was deemed inexpedient. Today, the Netherlands stores 31% of the national reserves of the valuable metal, the rest is in the USA, Canada and Great Britain.

In the photo: the office of the Netherlands bank (De Nederlandsche Bank) in Amsterdam.

 

A credible asset

The experience of previous generations taught the Dutch to rely only on the time-tested values, bearing in mind that the first economic bubble, also known as the “tulip mania”, occurred in Holland in the 17th century. Due to the tulip boom, their price exceeded reasonable limits, damaging the state economy and overheating the market. As a result, the price of flower bulbs fell sharply, people began selling them for a pittance.

Fiat money*, similar to the Dutch tulips at one time, risk falling into a “financial abyss” if pressured by crisis. Therefore, the Netherlands bank understands that gold instills confidence like nothing else, given that its value does not depend on outside circumstances.

In times of decline, the yellow metal rises in price, contributing to the preservation and accumulation of invested funds.

As of November 25, 2019, the price of gold is $1,459 per ounce. Analysts of one of the largest banks in the world — Citigroup — believe that this figure can rise to $1,700 within the next year.

Increasingly, in different parts of the planet — from the Netherlands to Iran — gold steals the show, becoming a symbol of hope and a guarantee of confidence in the future. Thanks to its crisis-proof qualities, the precious metal became known as an unrivaled Financial Security tool.

 

WHAT IS THE SECRET OF GOLD?

 

Glossary:

*Cold War — a period of global geopolitical tension between the USSR with its satellite states and the United States with its allies (1946-1991).

*Fiat money — a currency without intrinsic value (not backed by precious metals), the nominal value of which is established and guaranteed only by the state.

 

Rate this article:
Published: 25.11.2019
Leave a Comment






Send
Alessandro Riccoelibero
Alessandro Riccoelibero
Grazie di tutte queste informazione gratuite che ci fate avere. Ognuno segue il proprio progetto o la propria marca ma tutti e dico tutti sono interessati all'oro, la differenza sta nel saperlo.
Nov 27
answer
Anita Lasso - GrupoLiderac24k
Anita Lasso - GrupoLiderac24k
Muchas gracias Excelente motivación e información sobre nuestro metal precioso..
Dec 02
answer
RELATED NEWS