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15 countries have applied to the United States to ship back stored gold, only 4 countries have succeeded, how much is there in my country

26 November 2020

 

Gold is a natural currency, and it is also the world's hard currency. As a national currency reserve, the more problems the world economy has, the more obvious the role of gold. Especially in the face of dollar risks, the role of gold is revealed. Due to the high cost of gold storage and the establishment of the Bretton Woods system, gold can be directly linked to the U.S. dollar. Therefore, most countries in the world store most of the gold in the underground vaults of the Federal Reserve Bank of New York. But now, more and more countries want to ship their gold back.

 

As for why the gold is shipped back? Most people believe that the world's trust in the United States has declined, and it has been in the economic crisis of recent years. The rescue role played by the dollar is minimal. On the contrary, when the world is in crisis, the interests of more countries have been harvested. When the United States encountered a financial crisis, it implemented a quantitative easing policy. Therefore, the credibility of the US dollar was not as good as before. In addition, after the end of the gold standard, the US dollar is no longer directly linked to gold. As the world currency, the U.S. dollar is currently in the currency reserve system. The trust value and share of the U.S. dollar are gradually declining. The long-term implementation of the value scale and the means of circulation of gold have become the primary choice for countries to avoid risks. Under this premise. 15 countries, including Germany, Belgium, Australia, Italy, France, Russia, etc., have already shipped or announced the return of gold.

 

Although there are many countries submitting applications, a few have been successfully shipped back. Although according to international law, the gold stored in the United States does not belong to the United States, and the property rights belong to the central banks of various countries. The United States only exercises its escrow role. It stands to reason that these countries can ship their gold back at any time, but the Fed rejects applications from many countries, causing many countries' applications to become waste paper. There are only a handful of countries that have successfully shipped back gold. As of May this year, only four countries including Turkey, the Netherlands, Poland and Germany have successfully shipped back gold.

 

Some people are curious, how much gold do we put in the US Federal Reserve Bank? According to data, China has 600 tons of gold reserves in the United States. The National People’s Congress can rest assured that in view of one of the foundations of the internationalization of gold and RMB, my country’s central bank has been increasing its gold holdings. As of the end of October 2020, my country’s gold reserves have reached 1948.32 tons. Except for the 600 tons in the United States, all the rest are stored locally.

 

In addition, our country is not among the 15 countries that want to return gold to the United States. As for why we are not in a hurry to return gold? On the one hand, my country has already begun to deal with the possible economic crisis; on the other hand, gold is expensive and large amounts of transportation are not convenient; on the third, my country holds US$1.0617 trillion in U.S. debt, which is still the second largest overseas creditor of the United States. Because of its greater influence on the U.S. bond market, it is impossible for the U.S. to "dead debts" without paying back. Return to Sohu to see more