In a recent note, ECB economists highlighted the risks that could arise from rising demand for physically settled gold contracts, particularly during periods of geopolitical stress. Their concern? Such demand might contribute to wider financial instability in the eurozone.
It’s a rare admission. And an important one.
Gold has long been viewed as a safe haven in times of crisis. But what the ECB is now acknowledging is that its role as a hedge can, under certain conditions, challenge the functioning of the broader financial system. If enough investors seek physical delivery rather than paper exposure, then the system of gold derivatives, often complex, opaque, and highly leveraged, could come under strain.
If you're thinking more seriously about your own exposure to real assets, I encourage you to watch our latest GoldCoreTV video. We explore the ECB’s comments in more detail and discuss what they mean for gold investors and the wider financial system.
You can also download our free guide- The Exit Plan, which outlines practical steps for protecting wealth with physical gold that is fully allocated, securely stored, and independently audited.
Because in times of uncertainty, clarity matters. And trust is built on what you can hold.
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