This Central Banker Wants Everyone to Have 100 Grams of Gold
The following is interesting to us because Kyrgyzstan's neighbors are cutting back on Gold purchases, with the important exception of Turkey. The Governor is not a Gold bug, and is quite rational in his thinking. He might be seeing the global de-dollarization around him and wants to be careful in his own way. It makes sense as the country is seeking to diversify out of a perishable commodity as a main means of wealth storage. It also is similar to the China policy of "storing its gold with its population", for better or for worse.- Soren K
A landlocked nation perched between China and Kazakhstan is embarking on an experiment with little parallel worldwide: shifting savings from cattle to gold.
One of the first post-Soviet republics to adopt a new currency and let it trade freely, Kyrgyzstan’s central bank wants every citizen to diversify into gold. Governor Tolkunbek Abdygulov says his “dream” is for every one of the 6 million citizens to own at least 100 grams (3.5 ounces) of the precious metal, the Central Asian country’s biggest export.
“We are hopeful that our country’s population will learn to diversify its savings into assets that are more liquid and -- more importantly -- capable of retaining their value,”
To that effect here is what he has done.
The Kyrgyz central bank has offered bars directly to the population. So far 140 kilograms have been purchased
We are hopeful that our country’s population will learn to diversify its savings into assets that are more liquid and -- more importantly -- capable of retaining their value,” he said
Storage is offered including safe deposit boxes at commercial lenders
"The options available for storage include safe deposit boxes at commercial lenders or with the central bank, he said. Some people opt to keep gold at home or possibly even bury it in the ground'" according to Abdygulov.
“The National Bank has ensured liquidity for gold -- we aren’t only selling, but also buying back gold bars that we produced and sold.
Reasonable Risk Management
Abdygulov, who has masters degrees from Nagoya University in Japan and the University of North Texas, may be a gold enthusiast, but he’s no advocate for dislodging the dollar completely. His advice is based on the “rule of three” -- splitting up savings between the Som (their currency), foreign currency, and gold.