It is very odd to hear big financial institutions giving signals about a possible financial system collapses.
The main reason why financial institutions including their mainstream media avoid to present a negative perspective about the economy is because of the panic this would cause helping the negative perspective become true.
Financial institutions try to be positive in general, regardless of what is truly occurring. But like the mouse before the earthquake when the risk is eminent their tent to give hints and signals about what is going to happen.
And maybe the time has come and our financial system might be not that far from collapsing as an article published by the Dutch Central Bank which claims that:
“if the system collapses, the gold stock can serve as a basis to build it up again. Gold bolsters confidence in the stability of the central bank’s balance sheet and creates a sense of security.”
When a central bank says “if the system collapses”, the next question that may arise is if they believe that the system will collapse?
Obviously, it’s difficult to respond precisely to this question but facts say that the Dutch Central Bank is moving a big part of their gold holdings to a military facility as they stated in their article:
“The Dutch central bank is moving part of the national gold reserves to a temporary home in Haarlem ahead of a permanent move to the new DNB Cash Centre at military premises in Zeist.”
The move looks more like a preparation for a big financial crisis because it is unusual for a central bank to move its physical gold in such an alarming way.
Many European countries started asking their gold back after the 2008 crisis and the main reason was that they were concerned about the control of ownership. Germany brought home most of its gold reserves from New York and Paris in 2017 leaving only 36.6 % in New York.
Many countries are increasing their gold reserves like Russia for example which has nearly quadrupled their gold stash in the last 10 years according to The Moscow Times.
Another interesting thing is a law that passed in 2015 which allowed Texas to repatriate its gold and to create a gold-backed bank, according to an article published by The New American stating:
“The law creating the first state-level gold-backed bank in the nation, House Bill 483, will involve repatriating about $1 billion of Texas gold from New York.”
All gold activity and framework preparation from big institutions seem like a preparation for a “big reses” as the Dutch Central Bank signals.
On the other hand, there is also bitcoin “the digital gold” which has not been tested yet in a time of crisis. It will be interesting to see how would bitcoin play in case of an eventual system reset.
What are your thoughts on the matter? Feel free to post your thoughts in the comments below.
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