Ronald Leung’s original, dated commentary is reproduced below. Views, invitations and product references reflect the time of publication; they are not investment advice, an offer, a guarantee of return or confirmation of current availability.
Gold used to be money. Under the gold standard, one US dollar was tied to a fixed weight of gold.
When that ended, gold became something we hold, not something we pay with.
That may be changing. Central banks now hold more gold than US Treasuries in their reserves, for the first time in about 30 years (ECB). Part of that is the higher gold price. But they also bought 863 tonnes last year (World Gold Council).
Hong Kong, Singapore and Thailand each have a dedicated regulatory function for gold. Many places don't, and only check gold trading against anti-money-laundering rules.
That was enough when gold simply sat in a vault.
If gold becomes a medium of exchange again, do we need a dedicated regulator to oversee it?
My answer is yes.
Disclosure: Esperanza operates a tokenised gold business. — Let's open the statute. A new breakdown every week.