So gold is a reserve to protect against a financial crisis. And according to Bernanke, gold is not a currency, it is an asset. What happens when countries repatriate their gold from foreign reserve banks? This seems like a withdraw to me. And if enough countries do this, then it is a run on the banks. The same type of financial crisis that was prelude to the great depression. If there is all this liquidity out there and no real assets to back them, what happens when corporations, persons, and sovereignty's demand their money?
Venezuela to repatriate 11 billion in gold reserves
Op-ed: Repatriation of Gold Reserves Threatens to Destabilize Global Economics
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