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Prudent leaders in Eastern European countries are repatriating their national gold reserves and diversifying into gold due to geopolitical risks and monetary risks posed to the dollar, euro and pound
◆ Slovakia has joined China, Russia and a host of countries buying gold or seeking to repatriate their gold from the Bank of England and the New York Federal Reserve
◆“Brexit and the risk of a global economic crisis put Slovak gold stored in Britain in a dangerous situation …”
◆ Serbia, Poland and Hungary have boosted their safe haven gold bullion reservesto protect their foreign exchange holdings and hedge growing monetary and systemic risks
◆ Poland’s government completed the repatriation of 100 tons of gold bullion; 8,000 gold bars worth $5 billion were moved by G4S from the Bank of England to the Polish central bank
Gold is all that nationalist leaders in Europe’s east can talk about these days.
Just this week, Poland’s government touted its economic might after completing the repatriation of 100 tons of the metal. Over in Hungary, anti-immigrant Prime Minister Viktor Orban has been ramping up holdings of the safe-haven asset to boost the security of his reserves.
The gold rush mirrors steps by Russia and China to diversify reserves exceeding $3 trillion away from the dollar amid flaring geopolitical tensions with the U.S. Motivations in Europe’s ex-communist wing, however, can vary.
Take the latest example. Former Slovak Premier Robert Fico, who has a shot at returning to power, urges parliament to compel the central bank into bringing home gold stocks stored in the U.K.
