{"id":24551,"date":"2025-06-05T19:30:00","date_gmt":"2025-06-05T16:30:00","guid":{"rendered":"https:\/\/forklog.com\/en\/an-awkward-golden-cushion\/"},"modified":"2025-06-05T19:30:00","modified_gmt":"2025-06-05T16:30:00","slug":"an-awkward-golden-cushion","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/an-awkward-golden-cushion\/","title":{"rendered":"An awkward golden cushion"},"content":{"rendered":"<p>As bitcoin storms a new <span data-descr=\"all-time high\" class=\"old_tooltip\">ATH<\/span>, Americans <a href=\"https:\/\/x.com\/NakamotoProjct\/status\/1924481867069509847\">are asking<\/a> how to amass even more digital gold. In pursuit, many are willing to part with a portion of their precious-metal reserves.<\/p>\n<p>In this ForkLog piece, we examine how the wealthiest holders of gold and bitcoin are preparing for change\u2014and where in the world it is easiest to buy physical bullion.<\/p>\n<p><iframe loading=\"lazy\" width=\"100%\" height=\"180\" frameborder=\"no\" scrolling=\"no\" seamless=\"\" src=\"https:\/\/share.transistor.fm\/e\/91fb62e0\"><\/iframe><\/p>\n<h2 class=\"wp-block-heading\">An irreversible process<\/h2>\n<p>Over the past ten years the Volatility Index (VIX) has entered panic territory eight times. The Covid-era peak at 80 surpassed the record set during the 2008 crisis.<\/p>\n<p>Dubbed the \u201cfear index\u201d, the VIX infers future volatility in S&amp;P 500 equities from pricing on the options market of CBOE. It helps gauge how sharply the market capitalisation of the 500 largest international companies could soar or sink.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh7-qw.googleusercontent.com\/docsz\/AD_4nXd4FaAYYBlF4AUBo-OjRqqSk9WZuLD21wxHiLNiv5mz0jMq8MlTbrpmkXYVLxW6_lUQUpvFRPlAEmZMSaddsj6qTAm-lOlQE3dFyCXjqdB7JJtnYZ-DzjFVvRpOvIvX6PG2qr1UCA?key=hx-7IRuQ7800z9gfkZnWcg\" alt=\"An awkward golden cushion\"\/><figcaption class=\"wp-element-caption\">VIX monthly chart, 2006\u20132025. Above 20 is \u201cworrying\u201d; above 30 \u201calarming\u201d. Source: <a href=\"https:\/\/finviz.com\/futures_charts.ashx?p=m&#038;t=VX\">Finviz<\/a>.<\/figcaption><\/figure>\n<p>The U.S. dollar is flashing warnings too. Since late 2022 the USD Index has increasingly resembled the onset of its historic slide\u2014from the 2002 peak to the turmoil of 2008.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh7-qw.googleusercontent.com\/docsz\/AD_4nXdmizsMDPNZCquUXQXf9psAOUeGaljuNQPHWjLlYleyDXkREIuvEhjR00TrmJeEGXzadqASDrK-PLBT3ah5DOQARFls8xOe50VxgbDAfatneG_I5CYUsId7VS6hAn3tfgw5-xce?key=hx-7IRuQ7800z9gfkZnWcg\" alt=\"An awkward golden cushion\"\/><figcaption class=\"wp-element-caption\">U.S. Dollar Index monthly chart, 1993\u20132025. Source: Finviz.<\/figcaption><\/figure>\n<p>Such signals do little to bolster investor confidence. They also underscore an imminent changing of the guard in global reserves.<\/p>\n<p>Government bonds, long seen as a haven when equities tumble, are having a rough spell\u2014yet remain embedded in top-tier portfolios and partly back some stablecoins such as USDT. Since 2021 these instruments have failed to break a bearish trend.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh7-qw.googleusercontent.com\/docsz\/AD_4nXfDUsHb3qrbmR0URpZ2sXBy7-rSQeT0c8_fV__p3zUAJdTcPXkb1Vkv4kfWF4vU9E4DPLSRmx41ASuxpS177uknAbZee93CffIiSbfh17cvuEzosmUYYz9DOC_DZFnETS338ZAuDw?key=hx-7IRuQ7800z9gfkZnWcg\" alt=\"An awkward golden cushion\"\/><figcaption class=\"wp-element-caption\">Short- and long-dated Treasuries. Source: Finviz.<\/figcaption><\/figure>\n<p>Combined with geopolitical and macroeconomic upheaval, these alerts spur experts to write entire books about alternative stores of value and to keep drumming home the case for precious metals and digital assets.<\/p>\n<p>Ray Dalio, founder of the giant hedge fund Bridgewater, has used a line more than once at conferences:<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cIf you don\u2019t own gold, you don\u2019t know history or economics.\u201d<\/em><\/p>\n<\/blockquote>\n<p>Similar views are shared by Peter Schiff, the Euro Pacific Capital president and bitcoin critic, and by Michael Burry, the investor who foresaw the 2008 crisis.<\/p>\n<h2 class=\"wp-block-heading\">Gold into bitcoin<\/h2>\n<p>Exemplary moves by some countries to add bitcoin to national reserve funds have signalled to billions the direction of travel for the global financial system. The big question: will the dollar still have a place, and what will money look like in five years?<\/p>\n<p>The fashion for adding bitcoin to the investment portfolios of not\u2011so\u2011rich firms is gathering pace. News sustaining the trend now lands more than once a week.<\/p>\n<p>The first cryptocurrency, dragging altcoins in its wake, has become a tool of political and economic speculation. Its correlation with traditional finance is high; recall the crypto market\u2019s reactions to Donald Trump\u2019s recent speeches or to a report by the <span data-descr=\"U.S. Federal Reserve System\" class=\"old_tooltip\">Fed<\/span>.<\/p>\n<p>Until a mass \u201cNakamoto\u201d future arrives\u2014where 1 BTC equals 1 BTC\u2014people must choose where to hold capital. With swings between a putative $50,000 and $250,000, an alternative and a calming ballast for the next five to ten years is needed. That leaves gold.<\/p>\n<p>Demand to convert between bitcoin and gold is already evident. As big banks open up access to buying the first cryptocurrency, U.S. citizens are ready to swap bullion for BTC.<\/p>\n<p>A recent poll found that four in five Americans would convert part of the country\u2019s gold reserves into bitcoin. The Nakamoto Project surveyed 3,345 respondents: most favoured converting up to 30% of the metal. On average, respondents agreed on 10%, while the young (under 35) are keener than others to hold the first cryptocurrency.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">4 in 5 Americans want some US gold reserves converted to bitcoin. <a href=\"https:\/\/t.co\/ibxXfe04g5\">pic.twitter.com\/ibxXfe04g5<\/a><\/p>\n<p>\u2014 The Nakamoto Project (@NakamotoProjct) <a href=\"https:\/\/twitter.com\/NakamotoProjct\/status\/1924481867069509847?ref_src=twsrc%5Etfw\">May 19, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Consider which countries and companies are accumulating these two assets the fastest.<\/p>\n<h2 class=\"wp-block-heading\">Concentration of \u201cdigital\u201d and \u201cpaper\u201d gold<\/h2>\n<p>In recent years crypto firms have been avid buyers of bitcoin. Yet others remain far behind the leader, Strategy. Michael Saylor\u2019s firm holds more than 580,250 BTC. Second among the top ten holders is miner MARA with about 49,230 BTC. Metaplanet rounds out the list with 8,888 BTC.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh7-qw.googleusercontent.com\/docsz\/AD_4nXcXDYbj2OsTigZxZXViyWaydrlQ6rGIktmClE9QqvfpOMJjbhDgQ4vkC4_1q04pN5TSzAOZ-un2dHTF8tLgrcknKAxWkhdVKztpM9la3kj70vj1T44taCKYsDF6I2iwhKyhS4hFVQ?key=hx-7IRuQ7800z9gfkZnWcg\" alt=\"An awkward golden cushion\"\/><figcaption class=\"wp-element-caption\">Top\u201110 bitcoin holders. Source: <a href=\"https:\/\/bitcointreasuries.net\/\">BitcoinTreasuries<\/a>.<\/figcaption><\/figure>\n<p>For the third year running central banks worldwide <a href=\"https:\/\/www.rbc.ru\/quote\/news\/article\/5ae098a62ae5961b67a1c4ba\">have bought<\/a> more than 1,000 tonnes of gold for their reserves: 1,045 tonnes in 2024, 1,037 in 2023, and a record 1,082 in 2022.<\/p>\n<p>Central banks remain the leaders in net purchases, with Uzbekistan, China and Kazakhstan among the top buyers. Poland and India continue to add to reserves, too\u2014both central banks added 3 tonnes in January 2025.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh7-qw.googleusercontent.com\/docsz\/AD_4nXdL6MN3qzUqoKpdZnHOOmX12jDP4II8t3nKOcv_c56BsqVwcJ8lFgw7FfgLZVMggmiidRndHOoQPEsczD1ycqFkUt9CHamHvvtw5x1uz1aBVVWKta-Xp_SjF5we_uDFz7AO7mrlog?key=hx-7IRuQ7800z9gfkZnWcg\" alt=\"An awkward golden cushion\"\/><figcaption class=\"wp-element-caption\">Top\u201110 countries by gold reserves (tonnes). Source: <a href=\"https:\/\/www.gold.org\/goldhub\/data\/gold-reserves-by-country\">World Gold Council<\/a>.<\/figcaption><\/figure>\n<p>The pace suggests countries are hastening preparations for a global economic transition.<\/p>\n<p>Jim Rickards, a former adviser to the CIA and the Pentagon and author of \u201cThe New Case for Gold\u201d, calls yellow metal not held in your possession \u201cpaper gold\u201d. He states plainly that, in a crisis, governments could freeze or confiscate it.<\/p>\n<p>Several countries have repeatedly asked for their gold back\u2014and found the process anything but easy.<\/p>\n<p>In the 1960s French president Charles de Gaulle demanded that the United States return France\u2019s gold reserves. He feared that America\u2019s balance-of-payments deficit would rupture the Bretton Woods system and devalue the dollar.<\/p>\n<p>France then launched the secret operation Vide\u2011Gousset and repatriated 3,313 tonnes of gold from vaults in New York and from the Bank of England in London between 1963 and 1966. In February 1965 de Gaulle publicly announced his intention to exchange France\u2019s dollar reserves for gold at the official rate and sent a fleet across the Atlantic to collect the country\u2019s hoard.<\/p>\n<p>France\u2019s actions put significant pressure on U.S. reserves and contributed to President Richard Nixon\u2019s 1971 decision to end the dollar\u2019s gold convertibility, marking the demise of Bretton Woods.<\/p>\n<p>States that hold their gold abroad:<\/p>\n<ul class=\"wp-block-list\">\n<li>India. In 1991 the country endured a severe crisis that forced the government to use its gold reserves to avoid default. About 8 tonnes were shipped to the Bank of England as collateral for loans. In 2024 the Reserve Bank of India moved roughly 100 tonnes from the United Kingdom back to its own vaults for the first time since 1991;<\/li>\n<\/ul>\n<ul class=\"wp-block-list\">\n<li>The Netherlands. Some 31% of the kingdom\u2019s reserves sit in the vaults of the Federal Reserve Bank of New York. Another 38% is with the Bank of England and the Bank of Canada;<\/li>\n<\/ul>\n<ul class=\"wp-block-list\">\n<li>Italy. The republic keeps gold at the Federal Reserve Bank of New York (43.3%), at a vault in Bern, Switzerland (6.1%), and at the Bank of England (5.8%);<\/li>\n<\/ul>\n<ul class=\"wp-block-list\">\n<li>Germany. As of end\u20112023 the country left 36.6% of its gold at the New York Fed and 12.8% at the Bank of England.<\/li>\n<\/ul>\n<p>For most Westerners, convenient access to investing in physical gold is limited. Buyers either face hefty taxes or red tape.<\/p>\n<p>Asia is different. In India the purchase tax is a modest 3%, and in 2024 the import duty was cut from 15% to 6%. In China, standard gold sold through the Shanghai Gold Exchange is exempt from VAT.<\/p>\n<p>Thailand supports free circulation, but from July 5th 2024 imposed a 7% VAT on all imported goods, including gold, regardless of value. Domestically, bullion can be bought in numerous jewellery shops and from licensed dealers. The standard fineness is 96.5% (23 karats), often sold as jewellery, bars or coins.<\/p>\n<p>Dubai levies zero import duty on gold and 5% VAT on sales. In Saudi Arabia, investment\u2011grade gold with 99% purity or higher is zero\u2011rated. In Qatar all gold transactions are tax\u2011free.<\/p>\n<p>Some countries impose relatively high VAT on bar purchases. In Japan it is 10%.<\/p>\n<h2 class=\"wp-block-heading\">Conclusion<\/h2>\n<p>While the crypto community awaits fresh bitcoin highs, the Fed is plotting its next move. No one knows what it will be, but the sharp policy of U.S. president Donald Trump leaves greater scope for VIX records\u2014and for accelerating change.<\/p>\n<p>Crypto\u2019s volatility can erase around 40% of accumulated value in a day. Big capital playing the long game cares little about price over a five\u2011year horizon. On every dip whales add to positions as small investors panic\u2011sell. \u201cBig money\u201d sells in pieces into rallies\u2014and buys back cheaper.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As bitcoin storms a new ATH, Americans are asking how to amass even more digital gold. In pursuit, many are willing to part with a portion of their precious-metal reserves. In this ForkLog piece, we examine how the wealthiest holders of gold and bitcoin are preparing for change\u2014and where in the world it is easiest [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":24550,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[1144],"tags":[18,536,842],"class_list":["post-24551","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-longreads","tag-bitcoin","tag-gold","tag-politics"],"aioseo_notices":[],"amp_enabled":true,"views":"83","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/24551","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=24551"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/24551\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/24550"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=24551"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=24551"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=24551"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}