Former ECB Vice President Slams Gold as 'Mythology' and 'Irrational'

Vítor Constâncio, former vice president of the European Central Bank (ECB), recently shared his views on gold and its role in the monetary system. In an interview with Alexej Jordanov, Constâncio stated that gold is 'mythology' and 'irrational,' describing it as a 'magic idea' based solely on people's beliefs.

Constâncio's comments are remarkable given his background as a central banker who played a key role in shaping the eurozone's monetary policy. He served as vice president at the ECB from 2010 to 2018, a period marked by unconventional policies and unprecedented interventions. Despite this experience, Constâncio claims that gold is not money or an anchor for the economy.

When asked about the implications of central banks accumulating more gold and fewer dollars in their reserves, Constâncio dismissed any potential consequences, stating that it has 'no impact on the international monetary system.' He attributed this trend to people's 'magic ideas' and 'irrational behavior.'

In a surprising admission, Constâncio revealed that central bankers believe gold is 'stupid,' but they still accumulate it because they know its value will increase due to public demand. He emphasized the importance of stocks and bonds as the 'grown-up trade' and portrayed gold as a speculative trinket.