Italy's Enduring Love for Gold Draws Attention Amid Rising Global Prices
Third Largest Reserves in the World After the US and Germany, Valued at 425 Trillion Won
"Gold Must Be Kept as a Last Resort in Any Crisis"
As international gold prices continue to reach record highs, Italy's traditional affinity for gold is drawing attention. According to Yonhap News on October 15 (local time), citing Reuters, "The Bank of Italy currently holds 2,452 tons of gold," adding, "This is the third largest amount in the world, following the US Federal Reserve (8,133 tons) and Germany's Bundesbank (3,351 tons)."
It is reported that approximately 1,100 tons of gold are stored in the underground vaults of the Bank of Italy's headquarters in Rome. A similar amount is stored in the United States, with smaller quantities held in the United Kingdom and Switzerland. The gold held by the Bank of Italy is valued at 300 billion dollars (about 425 trillion won) at current market prices, which is equivalent to 13% of last year's gross domestic product (GDP).
Some have argued that Italy should sell its gold to reduce the national debt, which amounts to 3.5 trillion euros (about 5,790 trillion won). There are also calls to sell gold bars to fund essential public services. However, the Bank of Italy has shown no intention of selling. The media outlet reported, "Italy's gold reserves are the result of decades of steadfast protection and repeated refusals to sell, even during times of crisis."
According to Yonhap News, Italy's attachment to gold dates back to the Etruscan civilization, which existed in central Italy in ancient times. The Etruscans were known for their skilled craftsmanship, and gold jewelry flourished during this period. However, during World War II, the Nazi German army, with the help of the fascist regime, seized 120 tons of gold, reducing Italy's gold reserves to just 20 tons by the end of the war.
After the war, as Italy grew into an export-driven economy, the inflow of US dollars increased, and some of these dollars were converted into gold. Italy's gold reserves reportedly increased to 1,400 tons by 1960. Unlike countries such as the United Kingdom and Spain, Italy did not sell its gold during financial crises, nor did it sell any during the national default crisis in 2008.
Salvatore Rossi, former Deputy Governor of the Bank of Italy, wrote in his book "Oro (Gold)" that "gold is like the family’s silverware or a grandfather’s precious watch," and that "it is something kept as a last resort for any crisis, especially when international trust in the nation is shaken."
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