Deutsche Bank has a great piece about forex reserves and the EU debt crisis. It noted that while the Euro has held up surprisingly well, gold has been the major beneficiary, especially among emerging economies. Industrialized countries, however, have reduced their gold reserves. This reveals the differing philosophies of industrialized nations as compared to those of the emerging counties. Industrialized countries trust fiat paper money, and emerging nations trust gold as the ultimate reserve currency.
Black Swan Insights