Federal Reserves are buying gold. Gold is a tool that can be used to support a nation's currency in a sell off.
Issues for a nation to construct a fait/deposoit currency that is traded on international markets, so its import and export habits determine its currency price, and not bank of clearance withdrawels into foreign currency. Tools needed by a nation to protect its currency are that it needs more than its own currency, as is buying its currency. Needs foreign deposit currencys and gold.
Gold's role is expanded in the modern money supply, and how nation's federal reserve system mantains its currency values. Note a nation's federal reserve able to acces funds m4 can buy up alot of gold. Only so many bars of gold to go around. Bank of Canada could easily buy up tens of billion in gold to protect the Canadian currency. Suggest the government does so. [Not suggesting the indivual buy gold, rather that gold as a tool is an important object in M4 as it is cheap when govenemnts can create spending power through regulating their nation's bank of clearance settlements, rather than printing money, to access the money supply.
A nation without gold has a weak currency, as cannot manage bank of clearance withdrawels into foreign currencies.
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