Crispin Odey, one of Europe’s leading fund managers, has made an important warning to gold investors.
Crispin Odey, director of Odey European Inc.; He explained that central banks can confiscate gold bars in the hands of people if needed. Pointing out the rising inflation rates, Odey warned the gold investors as follows:
“People should not be surprised recently to be getting more gold. However, at some point, the authorities can remove these gold from circulation and prohibit private individuals from owning gold… But they only do this if they need a stable currency to be used in world trade. ”
According to Bloomberg’s report, there is currently no such decision on the agenda of any central bank. Therefore, it is difficult to say that these warnings are based on a concrete decision or development. But there is an example of a similar event in history.
While the Federal Reserve (Fed) was on its way to devaluation in 1933, it started to “forcefully” purchase gold bars belonging to private individuals. The ounce price of gold was thus increased from $ 20.67 to $ 35, which continued until 1971.
However, it is worth remembering that the gold standard is no longer used and is not tied under any currency. As such, it is not likely for a central bank to take a decision in the direction Odey warns.