In the future gold will play dominant role in a multicurrency reserve system
“Capital flows from emerging markets to developed countries have occurred because central banks and private investors have sought the liquidity and superior credit ratings only offered by the dominant reserve currency markets. The inherent weakness of this ‘non-system’ is clear, however, which may explain why many emerging market central banks are increasing their allocation to gold. It is liquid and has neither credit nor default risk.”
USAGOLD note: Nation states line their portfolios with gold for the same reason private investors do – for long-term asset preservation and as a protection against currency failure.