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Dutch Central Bank Admits It Has Prepared for a New Gold Standard

In a recent interview the Dutch central bank (DNB) shares it has equalized its gold reserves, relative to GDP, to other countries in the eurozone and outside of Europe.

This has been a political decision. If there is a financial crisis the gold price will skyrocket, and official gold reserves can be used to underpin a new gold standard, according to DNB.

These statements confirm what I have been writing for the past years about central banks having prepared for a new international gold standard.

Wouldn’t a central bank that has one primary objective maintaining price stability serve its mandate best by communicating the currency it issues can be relied upon in all circumstances?

By saying gold will be the safe haven of choice during a financial collapse, DNB confesses its own currency (the euro) does not weather all storms. Indirectly, DNB encourages people to own gold to be protected from financial shocks, making the transition towards a gold based monetary system more likely.

Dutch Central Bank Comes Clean on Gold Strategy
When I asked European central banks about a legal requirement to equalize their gold reserves, two of them replied there is no such obligation.

Which is strange given the obvious aligning of reserves over the past decades, illustrated in the charts below, and the new comments by DNB.

DNB provides an explanation in the aforementioned interview by revealing that their gold policy is set in consultation with its shareholder, the Ministry of Finance of the Netherlands.

The idea of balancing gold reserves was first conceived in the 1970s and then executed from the early 1990s until 2008.

With no legal requirements for European central banks to balance reserves, the seeds of their actions could be found at their respective governments.

My Freedom of Information (FOI) requests about this subject submitted at DNB have never yielded results because DNB is exempt from such inquiries.

This week I have sent FOIs to the Dutch Ministry of Finance to find out what gold policy agreements governments have made internationally.

Source: gainesvillecoins