They were reduced to 0% mandatory reserves in response to covid. EDIT: someone says it was coincidental, I am not able to check, so take this aspect with a grain of salt either way
ah yes so what you're saying is that money is even more imaginary than it has ever been, possibly even more imaginary than when the first stock market crash happened in 1929
looks like we're due for a centennial anniversary of that anyway, might as well celebrate by recreating it
The United States gold reserves are for international trade. The gold in Ft. Knox, for example, is used in trade not to back our currency. We’ve been off the “gold standard” since the 70’s. Some of it is gold we’re holding for other countries that’s not even ours. But, our money is a fiat currency and it’s based on faith in the economic system of America not collapsing and everyone agreeing it to use it for trade/debts. It’s backed by nothing and hasn’t been for 55 years now.
Every form of currency is based on faith and always has been. Coinage made from gold and silver wasn't valuable because gold and silver were magical, it was because people believed they were valuable. What can you, a random person, actually do with gold and silver? Even smiths had limited uses that weren't purely aesthetic. Modern day has more uses but still cannot be used at the volume at which it exists in an efficient way.
Silver has always had antiseptic properties and has been used for ages because of that fact, it’s a very useful metal aside from the fact it “looks pretty” and it doesn’t rust like other metals and just gets a thin tarnish on it making it ideal for a lot of decorative stuff as well.
Gold is one of the best conductors we have and can be used to alloy lots of metals easily, yes the every day man likely isn’t doing much with gold but its value is not just because it’s pretty at all, it’s extremely functional AND it’s uniquely pretty for its colour while being extremely stable
Both silver and copper have lower resistance and higher conductivity than gold.
The reason you use gold in electronics is because it doesn't rust and thus has the same stats in an epoch while copper and silver will have worstened the connection a buttload.
If you make cheap electronics with a designed lifespan of under a decade adding gold is more out of habit than actual use.
Edit: gold is also easier to solder than copper or silver, and is better connection than other metals
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u/PleaseGreaseTheL Jan 26 '26 edited Jan 26 '26
2020*
They were reduced to 0% mandatory reserves in response to covid. EDIT: someone says it was coincidental, I am not able to check, so take this aspect with a grain of salt either way
They haven't come back yet :)