The Gold Oberver/Jan Nieuwenhuijs/2-15-2022
“Which brings us to gold. Because gold is the only international currency that isn’t issued by a central bank and thus can’t be printed, there is no limit to its price denominated in fiat currencies, which can and are printed. To illustrate, European central banks accumulated most of their gold during Bretton Woods when gold was valued at $35 dollars per troy ounce. At a current gold price of roughly $1800 dollars these central banks have unrealized gains worth hundreds of billions of dollars (denominated in euros on their balance sheet). How can these unrealized gains be used?”
USAGOLD note: More deep thinking on the uses and abuses of gold from Jan Nieuwenhuijs …… The European Central Bank already marks its gold holdings to market. The United States should do the same, as should each central bank in the EU. Going the route JN suggests would do wonders for the gold mining industry which would then be in the business of furnishing the central banks with an important asset for their balance sheets – perhaps even the single most important asset on their balance sheets.
