Hello mates, so here's some news in the financial world that you might find interesting. Recently, gold has overtaken the euro in global international reserves. Now, let me break this down in simple terms for you.
It's like countries have piggy banks where they keep money and other valuable things. These piggy banks are their international reserves, and they use them to pay for things with other countries and to make sure their own money stays valuable. Before a lot of countries kept a big part of their reserves in euros, which is the money used by many countries in Europe. But now, they've started keeping more gold instead of euros. Gold is like the shiny treasure you see in movies, and it's been valuable for thousands of years.
So why are countries doing this? Well, gold is seen as a safe bet. It doesn’t change in value as wildly as some other things can, so it's a good way to protect their money. It's kind of like when you decide to save some of your money in a really secure piggy bank rather than spending it on things that might not hold their value.
This shift means that gold has become the second most popular asset in these piggy banks, right after the US dollar. It shows how much trust and importance countries are placing on gold these days. And most of all it means people loose confidence in euro or at least give it less importance, Why ?
In my opinion because euro is kinda inflated these days and secondly (but less sure) because the european voting is happening and depending who get elected the euro could get some changes in value.
Thanks to leonis in the bro discord that shared this tweet,
https://x.com/zerohedge/status/1799026067354894714
Additonal search links,
https://www.gainesvillecoins.com/blog/gold-overtakes-euro-in-global-international-reserves
https://www.fxempire.com/forecasts/article/gold-overtakes-euro-in-global-international-reserves-1434698
Posted Using InLeo Alpha
