Much of the world’s sovereign gold reserves have been stored for safekeeping for many years in the vaults of bullion banks and other international financial institutions, largely in London and the United States. The reasons the world has stored its gold in the bastions of Western democracy vary: in the case of Poland, as we reported last week, gold bullion reserves were spirited out of the country ahead of the invading Nazis during World War II, first to France, then to the U.S. Physical gold is a bit bulky as a medium to use for buying and selling when you’re dealing in millions, billions and trillions, so governments have been content for the most part to leave it in place and merely trade it around on paper or digital 1s and 0s. Because the largest bullion banks are headquartered in the West, and because the U.S. dollar has been the world’s currency for commerce and bank reserves, much of the world’s gold has ended up sitting in Western vaults.
That tradition is changing quickly. Among those nations that have either reclaimed their physical gold reserves or where initiatives to do so are in process, WealthCycles has written about gold repatriation efforts in Romania, Venezuela, Ecuador, Switzerland, Poland and Germany.
Finland Latest to Join Gold Repatriation Movement
Sep 23 2013
Mine, said the paper, mine are the words that smother the stone with imagined birds, reams of them, flown from the mind of the shaper.
—from ‘Song of the Powers’ by David Mason
Finland recently became the latest nation to initiate action to pull its physical gold reserves back within its national borders. As WealthCycles has reported over the past year or so, the gold repatriation movement is steadily growing, as country after country moves to retrieve their gold. The announcement by the Finnish repatriation movement states the rationale most succinctly:
Venezuela and Germany recently have made the decision to bring their gold back home and many other countries are seeing initiatives to do the same. This tells us that governments are getting ready for a currency crisis.