Originally Posted by
SBQ
By default, most do in ways of owning expensive jewelery. It spans across all cultures around the world. But to answer why western central banks don't care about the gold has more to do with macroeconomics and fiat $. The rise of western nations came about by use of fiat currency which is tied to the economic output of the country. The previous economy from developing nations tend to rely on a 'gold standard' where the amount of physical gold held by the central bank would determine the country's currency strength. Which would you pick? If you start looking at the reasons why Bretton Woods formed and why the Gold Standard was abolished.. you'll find it's those nations that were able to elevate their standard of living through fiat currency... What countries that remain on a 'gold standard' or buying large amounts of gold by their central banks had come out at a high standard of living for their country? Even in NZ's case the RBZ had sold it's gold reserve (if I recall correctly) in the 1980s. In fact, physical gold in pure non-jewelry form attracts no GST or real restriction to bring in and out of the country. It's to show that from the NZ central banks point of view, gold serves very little purpose in the NZ currency or monetary system.