Dutch Central Bank: Gold Could Save the World During a Financial Collape

This is big. A central bank has acknowledged the important role gold could play during a financial system collapse.

An article published by the De Nederlandsche Bank, or Dutch Central Bank, states 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."

The article, titled "DNB's Gold Stock" states:

A bar of gold retains its value, even in times of crisis. This makes it the opposite of "shares, bonds and other securities" all of which have inherent risk...

The essay says that gold is the “trust anchor.”:

Gold is... the trust anchor for the financial system. If the whole system collapses, the gold stock provides a collateral to start over. Gold gives confidence in the power of the central bank's balance sheet.

This report comes on the heels of news on October 7 that the bank announced it would soon be moving a large part of its gold reserves to "the new DNB Cash Center at military premises in Zeist."

According to the IMF's latest data, the DNB holds 615 tons (15,000 bars) of gold mainly in Amsterdam, with other stores in the U.K. and North America; the value of this gold reserve is over €6 billion ($6.62 billion). 

-RW

(ht Zero Hedge)