A Central Banker Who Wants Citizens to Have 100 Grams of Gold

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,” 

 

Tolkunbek Abdygulov

 

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.

  • Creating Liquidity

“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.

more here

 

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Jack MeHoff (not verified)

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I think its a GREAT idea. I'm off to Gary Indiana with my 100 grams for vacation!!
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Jim Lauder (not verified)

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They could not possibly do that as it would be showing its hand; a 7 and a 2 non-suited.
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Anonymous (not verified)

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They seem to have taken a position that could be compared to the goldmoney model. The goldmoney model has the added user-friendly benefit of using a person's gold as a debt-free global currency with real-time liquidity. Goldmoney.com/r/0UZxqF
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Anonymous (not verified)

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The Fed, our central bank is a den of thieving, swindling vipers that would sell out the country in its entirety in a second, if it could guarantee them more time (before they fail) with dominating the global reserve currency.... This Kyrgyz CB sees the real problem with fiat currency and wants its citizens to be protected financially against fiat money crises and equity market crashes, that will be occurring soon. Precious metals are the next "bubble", except this increase in value of the asset class will be permanent, since it has been so devalued over the last 100 years and its REAL VALUE HAS NOT BEEN PROPERLY ESTABLISHED....~$5000/oz Au; $125-$200/oz Ag at current fiat levels appears to be fair value, when taking the math in to account.
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Heysus (not verified)

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Too bad the FED won't tell our public the same thing!