Recently, the price of gold has soared like a wild horse on the loose, attracting global attention. In China, for example, the price of gold has hit a new high in recent years, reaching 700 yuan per gram.
At the same time, a topic has quietly surfaced: how much gold is stored in the underground vaults of the Federal Reserve Bank of New York in the United States, which is about 600 tons, equivalent to billions of yuan, according to public information. Why, then, is China's gold stored in the distant United States, and what is the story behind it?
Why is Chinese gold stored in the United States?
When it comes to storing gold in the United States, many people may have doubts: Why did they store their gold in the United States? After all, in the international political arena, the United States has had many "willful" behaviors. In reality, however, this concern, while understandable, is unnecessary. Because gold is deposited in the United States, it is not simply a physical deposit, but an arrangement based on a range of international financial systems and historical reasons.
As early as the last century, the Bretton Woods system established the pegging relationship between the US dollar and gold, and in order to facilitate international trade and settlement, countries have chosen to deposit gold in the United States. This practice has continued to this day, and although the Bretton Woods system has collapsed, countries have retained this practice of storing gold. Therefore, the deposit of gold in the United States is more of a historical legacy and international financial practice than a simple trust issue.
There is no doubt about the safety of the Federal Reserve Bank of New York
Of course, governments naturally attach great importance to the safety of gold. The underground vaults of the Federal Reserve Bank of New York are known as one of the safest places in the world, and their security measures are tight enough to deter anyone who tries to steal gold. Therefore, from a security point of view, gold is also relatively reliable for storage in the United States.
Gold has risen sharply, will the United States default on its debts?
So, in the face of the sharp rise in gold prices, should we worry that the United States will default on its debts? The answer is clearly no. There are some concerns about the possibility of the United States defaulting on the gold deposited in the United States, but this concern is more based on political and economic considerations than simply a matter of trust.
First, the financial strength and credibility of the United States are unquestionable on a global scale. As the world's largest economy, the United States has a well-developed financial market, sound financial institutions and standardized financial regulation, all of which make central banks willing to deposit some of their gold reserves in the United States to ensure their safety and liquidity.
Secondly, as an important medium for international transactions, gold is stored in the United States, which is also convenient for central banks to trade and operate gold. The United States is one of the world's largest gold trading centers, and its COMEX gold futures market in New York and gold options market in Chicago are the most important gold derivatives trading markets in the world. Therefore, from the point of view of operational convenience, it is also reasonable for central banks to deposit gold in the United States.
In addition, central banks will consider and weigh the balance when deciding where to store gold. In addition to the United States, some countries will also choose to store gold in other reputable countries or regions to diversify risk, and in recent years, some countries have transferred some of their gold reserves from the United States to their own countries.
China has a lower percentage of gold deposited in the United States
According to the latest data released by the central bank, as of March 24, the mainland's gold reserves were about 2,263 tons, and the gold stored in the United States was only 25% of the total reserves.
According to the previous analysis, in order to facilitate international trade and transactions, the storage of gold in the United States is also a necessary way and means, but the proportion of gold stored in the United States is not high, and the impact on the country is not large.