A recent report posted on the “Interesting.com” platform – on April 14, 2025 – stated that the concept of “reserve currency” exceeds in its essence the mere size of the national economy of the exporting country, explaining by journalist Navamia, in order that the global status of any currency or financial origin is based on 3 basic pillars: confidence, liquidity, institutional acceptance by the official and financial authorities.
According to the analysis issued by the Research Department at UBS International, gold represents the most prominent example of the reserve asset, although it is not a traditional currency, because of its formal support and stable investment behavior in periods of uncertainty, which is not available to the same amount in white minerals such as silver, platinum, and blockium.
Gold proves its position and institutional demand resolves competition
The UBS report -which was reported by Investang.com that gold is still the preferred origin of investors in light of geopolitical and economic fluctuations, as gold prices benefit from supporting the official sector, which does not apply to the rest of the precious metals.
The report emphasized that the investment funds circulating in the “ETFS” have recorded noticeable gains since the beginning of the year, while the demand for silver funds has remained almost constant, which reflects the investment caution towards silver, despite the limited supply, due to the absence of institutional demand and the continued doubts about the growth of the industrial sectors.
“UPS” added that, despite the structural deficit in the supply of white minerals, “this tension in the market has not turned into an actual investment demand”, which reflects that investors are still not ready to replace gold with other minerals, and are mainly dependent on long -term confidence and political legitimacy of the reserve.
Platinum and platinum without cash weight
According to the report, platinum lacks clear request engines, while pacalium performance is excessively associated with the auto sector, making it less attractive as a value of value. The mineral also suffers from poor liquidity and high sensitivity to the market, which makes them inappropriate as backup assets despite the possibility of high prices in the short term.
Reserves need more than a good price
The report issued by UPS concluded by emphasizing that “what makes the reserve asset is not price expectations or balance of supply and demand, but continuous demand, support for the official sector, and investor confidence”, which are clearly manifested in gold, and absent from white metals.
Intefsting.com concluded that these criteria represent the basis on which the decisions of the central banks and sovereignty funds are built in choosing their reserve assets, which explains the continuation of gold in preserving its position despite the development of markets and the diversity of modern financial tools.
