A lot of central banker bashing goes on in the world of gold investment. This is, of course, understandable given the fiat machine they keep well oiled.
However amongst their daily routine of propping up the paper markets, we all know that they recognize how important gold is. Some of them, are even prepared to be vocal about it.
Salvatore Rossi – Director General of Banca d’Italia
For his fierce defence of Italy’s gold reserves as last week’s LBMA conference, when he reminded attendants of the ‘special role that gold plays in central banks’ official reserves,’ we believe Mr Rossi deserves some credit.
Mr Rossi believes gold’s role as a faceless currency gives it unique role in a central bank portfolio, playing a key role in central bank independence ‘owing to the fact that it is not “issued” by any government or central bank, so its value cannot be influenced by political decisions or by the solvency of any institution.’
With 2,451.8 tonnes of gold the head of Italy’s central bank sees gold as the ultimate safe haven for all countries, ‘As an element that enhances the resilience of reserves to abrupt falls in value in times of stress, gold underpins the independence of central banks and their ability to act as the ultimate guarantor of domestic financial stability.’
Source The Real Asset Co.