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Digest Finance

Reintroduction of Gold into the Financial System: Trends and Drivers

Vol. 23, Iss. 4, DECEMBER 2018

Received: 13 February 2018

Received in revised form: 13 March 2018

Accepted: 20 March 2018

Available online: 24 December 2018


JEL Classification: E40, E44

Pages: 363–372


Borisovich V.T. Russian State Geological Prospecting University (MGPI-RSGPU), Moscow, Russian Federation

ORCID id: not available

Zaernyuk V.M. Russian State Geological Prospecting University (MGPI-RSGPU), Moscow, Russian Federation

ORCID id: not available

Subject The research is intended to examine the growing importance of gold during the economic instability in the financial markets.
Objectives The research is to study whether gold can be reintroduced into the financial system. We analyze trends and drivers in the domestic and global gold markets.
Methods The methodological underpinning comprises objective principles of a systems approach, economic analysis, logic and comprehensive approach to evaluating economic phenomena and processes.
Results Gold was found to become more popular not only from investment perspectives. Gold evidently regains the reputation of a monetary metal. Central banks sold gold from their exchange reserves until 2009. However, in 2019 they formed the demand, buying gold. The instability of the global financial system makes countries holding gold reserves abroad repatriate them.
Conclusions and Relevance Resting on the hegemony of the U.S. dollar, the global financial system perishes, paving the way to coming changes. It includes various options of the monetary circulation involving gold.

Keywords: gold, investment, gold exchange reserve


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