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Who needs your gold?
Material posted: Publication date: 22-11-2014

Terrorists from the "Islamic state" in Syria and Iraq are going to introduce gold dinars. The Bank of Russia is actively buying gold, and in Switzerland, some politicians want to ban the Central Bank to sell its reserves. And yet, gold has no "cash" of the future.

British yellow press writes that the terrorist group ISIL (aka ISIS, aka the Islamic state), operating on the territory of Iraq and Syria, is going in the coming weeks to release into the circulation is completely relevant to the Qur'an gold and silver coins. The gold Dinar should weigh 4.3 g (according to other sources, 4,44 g), silver dirham is 3 grams (or 3.11 g). The idea is not new, even for our time – the attempts to issue Islamic gold Dinar being made regularly, for example, in Malaysia and Indonesia, but yet even once the money had not been recognized at the state level. In fact, it's just gold items, have savings, collectible and religious significance (they can be paid zakat and sadaqah). In the stores of gold and silver coins nobody pays.

If the news is not a duck, the ISIL may prove useful: with all the conventions of this "state" the introduction into the official turnover of gold and silver coins will give an answer about the features of the gold or bimetallic standard in our time. Most likely, nothing good will come of it. In the situation of war and unstable economies, local residents are unlikely to want to let go got to him the value of hard currency: real turnover will remain local paper currency, and gold and silver will be a store of value and – at best – a way to pay for major purchases. The law of Copernicus Gresham not been canceled: "bad" currency from circulation replacing the "good" that accumulates in the hands of the population. Moreover, the purchasing power of coins would be extremely high: 4,44 g of gold at current prices are 166 dollars for war-ravaged areas very much. The silver coin will have value at $ 1.5, it's much better, but for daily calculations is not very acceptable.

To gold the interest shown not only by the terrorists. The Bank of Russia this year have sharply increased purchases of the precious metal in Russian companies: if for the past two years, he bought up all 75-77,5 tons of the metal this year into the coffers of the Motherland went down to 115 tons (end of September). However, this can be explained by sanctions, Western banks and companies that previously bought Russian gold, now do not risk, and to put the metal where it is necessary. The total number of gold stored by the Central Bank, on October 1 amounted to 1 151 ton. It is unlikely that the Bank of Russia is going to revive the Golden Ducat, and if the inventory becomes too much, some of them have someone to sell (see above), no sanctions in this case can not hurt.

A kind of gold fever swept in November and Switzerland. The initiative group, which includes politicians from one of the parties has gained the right of holding a national referendum on increasing gold reserves in the reserves of the National Bank. The Swiss in the beginning of the century very successfully sold most of their gold reserves – 1 550 tonnes of steel were completely ridiculous by today's standards the price is 17.4 thousand francs per kilogram (gold now costs about 37 thousand francs per kilogram), and this trauma has remained in people's memory. Now the organizers of the referendum required to increase the share of gold in international reserves of the Central Bank to 20% (now 7%) and to prohibit the Central Bank in the future to sell it. A clear rationale for these requirements no, speaks only of a "possible disaster" and that "even the most stable currency could rapidly disappear". And gold, supposedly forever.

The country's authorities and the Swiss Central Bank itself all the forces resisting the adoption of this decision, a preliminary survey showed that the chances of a positive response a bit (although there is): a firm "Yes" said 29% of people, a firm "no" – 28%. The rest not sure how to answer or have not yet made a decision.

In the modern world gold is as an industrial metal, like any other, no reason to hold in it no substantial money, in addition to the usual asset diversification. But the myth about a special "internal" monetary value of gold is strong, get rid of it difficult, and use privatye economists, politicians and religious fanatics trying to impose gold as a means of payment or providing of money.


Source: http://www.banki.ru/news/columnists/?id=7323176


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