Gold is the ******* et people buy when they have stopped believing in promises. Then most of them hand it to a bank in another country for safekeeping, which is itself a promise.
That arrangement is older than most of the world's central banks. The Bank of England has provided gold custody services to developing nations for decades, according to Reuters, and it usually works for the simple reason that ******* ody involved has any incentive to argue about it.
Custody is boring. It stays boring right up until two governments claim the same account.
Then the metal in the vault ceases to be a reserve ******* et and becomes a legal exhibit. It does not move, and it does not get sold.
It sits in a basement in London, earning nothing and settling nothing, while lawyers on two continents argue over whose signature counts on the paperwork.
#reuters
That arrangement is older than most of the world's central banks. The Bank of England has provided gold custody services to developing nations for decades, according to Reuters, and it usually works for the simple reason that ******* ody involved has any incentive to argue about it.
Custody is boring. It stays boring right up until two governments claim the same account.
Then the metal in the vault ceases to be a reserve ******* et and becomes a legal exhibit. It does not move, and it does not get sold.
It sits in a basement in London, earning nothing and settling nothing, while lawyers on two continents argue over whose signature counts on the paperwork.
#reuters
2 months ago
