There is a well-known saying in the global financial world: currency is not gold, but gold is currency.
This one sentence is enough to clarify the status of gold in the current global financial world, and it also proves the irreplaceable role and status of gold, a precious metal, in the history of human development.
Why is the United States the only superpower in the world? It's simple, because the US dollar is the only global settlement currency!
What is the core of the US dollar? To put it simply, it is gold!
Although gold has withdrawn from the currency circle decades ago, no one can deny that even if gold is no longer a currency, no matter what kind of currency it is, it is not as good as gold!
Why can the US dollar become the world's only settlement currency? Isn't it because the United States has enough gold reserves?
Without sufficient gold reserves, who the hell in the world will recognize your US dollar?
Last year, in 2018, the country with the largest gold reserves in the world was still the United States, with a gold reserve of 8,200 tons! If you count the 6,400 tons of gold reserves kept by other countries in the United States, the amount of gold in the United States alone is as high as tons!
The United States has been ranked first in the world in gold reserves for almost a century. In fact, in the middle of the last century, just after the end of World War II, the United States' gold reserves once reached tons!
The nickname of the US dollar is "American dollars", which is enough to prove that the US dollar is actually supported by gold.
Therefore, although gold is not a currency, it is the hardest currency in the world!
And it is not just the United States. Developed countries in Europe, such as Germany, France, Italy, Switzerland, and the Netherlands, are among the top ten countries in the world in terms of gold reserves. All of these countries are developed countries without exception. In particular, the gold reserves of France, Germany, Italy, and the Netherlands account for more than 65% of their foreign exchange reserves.
In other words, the foreign exchange reserves of these four developed European countries are mainly in the form of gold!
The United States' gold reserves account for 75% of its foreign exchange reserves.
What does this prove? It’s simple. In these old economic powers in Europe and America, gold is still the most important “currency margin”.
This is true for countries and also for financial groups.
As mentioned before, the core business of a consortium must be banking. How can a bank grow bigger? In fact, it is very simple. As long as your bank has enough gold reserves, it will have a strong enough ability to resist risks. As long as your bank has enough ability to resist risks, it will attract more depositors to deposit money in your bank and more people to borrow money from your bank. In this way, your bank will develop rapidly.
To put it bluntly, what banks need most is gold reserves!
Central banks of various countries need gold reserves, and similarly, large commercial banks also need gold reserves. No bank would be dissatisfied with having too much gold reserves.
If we count the major banking groups around the world, whether it is Citigroup, UBS, HSBC, or Bank of America, or Mellon National Bank, their internal gold reserves are sufficient. Especially some banking groups in the United States, the Federal Reserve's gold reserves are even placed in the underground vaults of these banks!
Gold reserves are the confidence and foundation of major banks!
Since Yang Jing wanted to develop his own consortium, he absolutely could not do without the necessary gold reserves. Therefore, Yang Jing would never sell the remaining gold unless he encountered extremely special circumstances.
Although gold is not a currency, it is the most popular thing in major banks around the world. In comparison, real estate, gems, diamonds, antique artworks, their value preservation performance is far inferior to gold, and their popularity in major banks is also far less than gold!
It's very simple. Antiques are valuable, right? They are precious, right? But if you pledge a famous painting that you bought for 20 million US dollars to a bank as collateral, the bank will only pledge 15 million US dollars to you, which is considered charity. Even if it only pledges 10 million US dollars or even less, you will have no choice because the bank has no right to pledge the painting, and your painting can only be pledged for this much money.
What? You're not convinced? If you're not convinced, don't go to my bank to mortgage your property. There are plenty of other banks out there. Go to them to mortgage your property and see how much they can mortgage for you! It would be strange if they can mortgage more than me!
But gold is different. Now one ton of gold is worth about 40 million US dollars. If you take 500 kilograms of gold to a bank as collateral, and the bank gives you less than 20 million US dollars, you can definitely slap him to death!
If you use gold as collateral to pledge at a bank, there will be absolutely no discount! Some banks will even give you more! (PS: The bank in Mexico is a foreign bank, and domestic banks are not in this category)
This is the charm and power of gold!
It is no exaggeration to say that if Yang Jing is willing to sell the more than 300 tons of gold in his hands now, he can exchange it for a huge amount of cash of more than 12 billion US dollars in minutes.
But Yang Jing would never do that. He is not stupid, and he is not short of money now. Only a fool would sell the gold!
If this much gold is kept in one's own bank as a reserve, the value of what can be done is definitely more than $120 billion! So only fools and idiots would do such a thing!
Moreover, as the amount of gold that can be mined on the earth becomes less and less, the value of gold will only increase until another new hard currency is found that can completely replace gold - things are valuable because they are scarce, and this is a universal truth.
My dear, there is more to this chapter. Please click on the next page to continue reading. It’s even more exciting later!
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