Fundamentally the world still operates to a gold standard. Different countries manage that in different ways, but its the very bottom line base. In the US they compulsory purchased all gold and locked 8000+ tons of it away, and issued the Fed with non-redeemable gold notes at a $42.42/ounce price. So the more the dollar weakens to the more leverage the Fed has, at $4242/ounce price the Fed has 100x leverage. Canada sold all of its central banks gold - because it has tons of gold buried away (un-mined). The UK sold some of its gold to help start/prop up the then new Euro, and as it also holds many other countries gold in safe keeping (used to be the predominant global hub of accounting/law/banking expertise, and where gold bars were moved between different countries cages in reflection of trade surplus/deficit changes). Push come to shove, and each currency has its gold 'reserves' to fall back upon if/when the domestic fiat currency becomes over-stretched. As part of that all gold within the country is included, i.e. potential 'compulsory purchases/seizure' of private/individuals gold - but as a very last resort. So as far as some countries are concerned gold held directly by the state, or more distributed across individual citizens ... is the same. As savers/investors in gold that is a key factor to be aware of. There is a risk that the state could at some point prohibit the movement of gold out of the country and compulsory purchase/seize your gold - by law, but likely only in very extreme cases. In reflection of that gold you may hold might be better placed if stored outside of your home country/beyond the reach of your state. Increasingly however states are making it more difficult if not impossible to hold gold privately/secretly. There is the argument that when the state knows where and how much you have - its no longer yours, its just a loan. In past generations it was considered none of anyone else's business how much they had/earned. In more recent times however and individuals have become much less caring about privacy, don't mind the state monitoring all their movements, actions, thoughts, wealth/assets. In effect people have willing accepted becoming prisoners/slaves of the state.