1908 Hungary Gold 100 Korona
The Austro-Hungarian Empire collapsed and vanished in 1918. The Empire's paper money became worthless. But the Empire's gold coins hold their value to this very day.
Conservative Hungary
- While the nations of the world go insane with open borders and print money by the TRILLIONS, we see Hungary close their borders to illegals and buy gold to back their economy.
The central bank of Hungary, the Magyar Nemzeti Bank (MNB), has just announced a purchase of a massive 63 tonnes of Good Delivery gold bars, and in doing so tripled the nation’s gold holdings from 31.5 tonnes to 94.5 tonnes.
In its press release about the huge transaction, published 7 April, the Hungarian central bank explains its rationale for the dramatic purchase of what is approximately 5040 large (400 oz) gold bars, highlighting that gold has no credit risk and no counterparty risk, and so reinforces sovereign trust over all economic environments (normal and extreme), while being one of the most crucial reserve assets that a central bank can hold.
Hungarian soldiers guarding gold bought from the UK in 2018.
From 10 Fold to 30 Fold
For those who may remember, this is not the first major gold purchase by the Hungarians in recent times, as the Hungarian central bank also caused shockwaves in October 2018 when it purchased 28.4 tonnes of gold, on that occasion increasing its gold reserves 10 fold from 3.1 tonnes of 31.5 tonnes, or a 1000% increase. See the BullionStar article “In surprise move, Central Bank of Hungary announces 10-fold jump in its gold reserves” from October 2018.
This means that over exactly two and a half years, the Hungarians have increased their sovereign gold reserves by a staggering 3000%, or 30 fold, from 3.1 tonnes to 94.5 tonnes, an absolute increase of 91.4 tonnes. How’s that for a conviction trade?
On the October 2018 occasion, the Hungarians purchased their 28.4 tonnes of gold at the Bank of England in London, and repatriated it back to Hungary in the same month, announcing the purchase and the repatriation at the same time, saying that ‘the repatriation has already taken place‘.
On this occasion, the MNB does not say where it bought its 63 tonnes of gold, but it may well have been again at the Bank of England in London. Nor does the MNB say if the 63 tonnes of gold has been repatriated to Hungary yet. However, going on the previous pattern from 2018, one would expect that yes it has been brought back to Hungary by plane and under heavily armed guard.
A No Confidence Vote in the System
Interestingly, this time around in 2021, the Magyar Nemzeti Bank says that part of the motivation for the new gold purchase is in “managing new risks arising from the coronavirus pandemic”, which is a subtle way of saying that since central banks and governments around the world have used the Covid excuse to ramp up debt levels, ramp up quantitative easing and ramp up money supply growth, therein debasing their fiat currencies and introducing inflationary risks to bond holders, the Hungarians are simultaneously ramping up their physical gold holdings to counter this insanity.
Or said in the diplomatic language of the latest Hungarian central bank press release, these concerns “further increase the importance of gold in national strategy as a safe-haven asset and as a store of value.”
The language of the NMB in 2021 is also similar to that which it used in 2018 when the Monetary Council of the Hungarian central bank said it was buying large quantities of physical gold since:
“Gold is still considered to be one of the world’s safest assets, whose characteristics can be attributed to gold’s unique properties such as finite supply of physical gold, and lack of credit and counterparty risk given that gold is not a claim against a specific partner or country.”
and
“gold remains one of the safest instruments in the world, and, even under normal market conditions, provides a stability and confidence-building function.”
Read More at Zerohedge.com
The Olden Days
When Gold and Silver was Money
When gold and silver were money somehow the sun came up every day, children played, businesses did business, people went to work and lived their lives.
But our ever so smart economists from the very best schools (who think loaning money to Greece is a good idea) tell us we are the "crazy" ones for wanting a stable gold backed currency and balanced budgets.
