World Bank Report Highlights Advantage Of Central Bank Gold Revaluation Accounts

• World Bank Report Highlights Advantage Of Central Bank Gold Revaluation Accounts
  by Jan Nieuwenhuijs of Gainesville Coins, via https://www.zerohedge.com/
  Recently the World Bank released a handbook for asset managers on why to invest in gold. At Gainesville Coins I have written numerous articles on gold revaluation accounts and how these can be deployed by central banks to absorb losses in case of emergency. The World Bank has taken notice of my research as they allude to this practice in a chapter on reserve accounting and reference to my work.
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  The World Bank publication underlines the fact that gold is the only financial asset without counterparty risk, and due to its scarcity relative to fiat currencies its price in the long run always increases. Central banks that own gold for an extended period can reap the benefits of their gold revaluation account without having to sell any gold.
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  Introduction
  The Gold Investing Handbook for Asset Managers document published earlier this year by the World Bank Treasury is an interesting read for investors. It covers the gold market structure, optimal portfolio assessments, geopolitical aspects, a trading and liquidity guide, and a discussion on gold accounting, among other subjects.
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  The World Bank Treasury is tasked to manage the World Bank’s finances and contribute to the Bank’s twin goals of “ending extreme poverty and promoting shared prosperity.” As such it acts as a trusted advisor to its member countries to support financial stability and provide “thought leadership in the broader treasury and financial management arena.” With this mission in mind the Bank’s Treasury writes that:
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  Throughout history, gold has played a vital role as a financial asset in the global financial system. … In the modern era, gold continues to play a critical role in the global financial system, serving as a hedge against inflation, a safe haven asset, and a reserve asset for central banks. … The role of gold in the global financial system has evolved over time, with changes in monetary policy, economic conditions, and technological advancements influencing demand and supply dynamics. Despite these changes, gold remains a crucial component of the global financial system and is likely to continue to play an essential role in the future. … The market disruptions brought about by the 2008 Global Financial Crisis (GFC), the US and China trade war, Brexit, and the COVID-19 pandemic, as well as a prolonged period of negative real interest rates and geopolitical uncertainties caused by financial sanctions imposed on Russia to freeze its foreign reserves, reinforced the strategic importance of gold as a buffer against financial instability.
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  read more.

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