I always thought that endless printing of fiat was a risk to financial stability, but the ECB thinks otherwise:
I wonder why so many central banks are buying so much of it:
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I was getting a shoeshine yesterday. The fellow buffing my shoes said, “Gold”. Just one word.
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@Divitias the article says, "…Market participants could be subject to significant margin calls and/or have trouble sourcing and transporting appropriate physical gold for delivery in derivatives contracts, leaving themselves exposed to potentially large losses, …”
Saying “market participants” (i.e. speculators) are at risk is not the same as saying the economic system is at risk. Systemic risk only exists if the failing entities are tied into the rest of the financial system, like MBS during the 2008 financial crisis.
It seems that central banks are accumulating physical gold. It’s speculators who are making leveraged bets. They could be wiped out.
Personally, I like to hold gold in my hot little hand. I don’t trust any gold fund or other entity where I don’t have the physical gold.
Wendy
We are not talking reliable sources anyway. LOL