New Zealand, survival without gold reserves

 Can New Zealand and other countries, like Norway and Canada, survive as we know them without gold reserves?

In this blog, I've always kept away from politics; I just see patterns. With the current rising gold price, it is no different; I see it as a fractal question. I see an economy as a fractal, and the measuring stick of the economy as money, and money is (historically) gold (and silver). Hyperinflations are exponential, and fractals point to the mathematics of exponentiality. 

 I have a strong interest in money, aways have, even if I'm hopeless at making it. I think fractal thinking may help us think about how this could play out. Before I go there, it is, to reiterate,  my fractal thinking that underpins my view of the importance of gold and silver as a measuring stick in an economy. They are a unit of measure. I have discussed this inflation comparison or analogy with the coastline paradox. This is my claim on what price inflation is.

Fractal thinking is scale-free thinking: what would happen to an individual with no gold reserves in a hyperinflation? Well, I'm asking the same question, not for the individual, but at a country scale, and for me, I'm thinking of my country of birth, New Zealand. Also, for a country I've lived in and been a resident of, Norway. Neither of these countries has any gold reserves. Nor does Canada have gold reserves.

They could, like the individual, lose a lot, or all, of their wealth if it isn't indexed to something secure, and it doesn't look like it is.  These countries are clearly not thinking about this. For Norway, will their immense wealth from petroleum save them, secure them? I don't think so. Oil is not gold; it is not money. 

As a fractal thinker, the only solution I have for these countries is to form alliances with countries that have gold and silver, and they need to start doing this soon. The fractal insight is, what would a person do if they had no gold reserves? They would experience a potential loss of everything; history tells us this. They would be very interested in knowing anyone close who has gold reserves that can help back them. This should work for countries, too?

I think these events will pay for themselves because some countries, not saying who, will be interested in buying out countries like New Zealand. 

Gold, as I write, is broken through 5000, and silver through US$100, and yesterday's action suggests its increase is not going to stop any time soon. 

This issue of zero gold reserves should be a priority for these countries. 

It is amazing to think that Zimbabwe has been increasing its gold reserves, the country that educated me on hyperinflation. The country that inspired my thinking around exponentials, inflation and fractals. 

Google AI searches: 

 What are New Zealand's gold reserves

AI Overview

The Reserve Bank of New Zealand (RBNZ) holds 

no gold reserves. The central bank sold its entire gold holdings in 1991 and maintains its foreign exchange reserves in other assets. Therefore, as of 2026, New Zealand does not officially hold monetary gold as a part of its reserve assets. 

• RBNZ Position: The Reserve Bank of New Zealand confirmed in 2023 that no gold is held as part of its foreign reserves.
• Total Reserves: While the bank does not hold gold, it does maintain substantial foreign exchange reserves, which in 2024 were reported at over 22 billion USD.
• Gold Mining: Although the central bank holds no gold, New Zealand still mines gold, with significant operations in areas like Otago and the Coromandel. 

AI Overview

Norway holds 

essentially zero official gold reserves, having sold off the majority of its holdings in 2004, which amounted to approximately 33.5 tonnes. While and other central banks have increased gold holdings, Norway's central bank (Norges Bank) currently keeps no, or near zero, gold in its official reserves, preferring to manage its wealth through the Government Pension Fund Global. 

• Current Status: As of late 2025, Norway's central bank holds almost 0 tonnes of gold in its official reserves.
• Historical Sales: In 2004, Norges Bank sold the vast majority of its gold reserves, retaining only a few bars for historical and commemorative purposes.
• Wartime History: During World War II, Norway famously evacuated 50 tonnes of gold to the U.S. and UK to prevent it from falling into German hands, most of which was later sold to fund the government-in-exile.
• Investment Strategy: Instead of physical gold, Norway holds its national wealth in foreign currencies, equities, and bonds, primarily through the Oil Fund. 

Norway is unique among many nations in its minimal reliance on gold as a reserve asset. 

AI Overview

Listen

As of mid-2025, Zimbabwe holds approximately 3.4 metric tons of gold in its reserves, managed by the Reserve Bank of Zimbabwe (RBZ) to back the Zimbabwe Gold (ZiG) currency. This amount represents a significant increase from 1.6 tonnes in mid-2024, with a goal to further increase reserves for economic stability. 

Key details regarding Zimbabwe's gold reserves include:

• Currency Backing: The 3.4 tonnes of gold, along with $100 million in foreign currency reserves, underpin the ZiG, which was introduced in April 2024 to curb inflation.
• Accumulation Strategy: The increase to 3.4 tonnes was achieved through a policy requiring mining companies to pay 50% of their royalties in the form of physical gold (in-kind).
• Target: The central bank has aimed to reach 5 metric tons of gold reserves by the end of 2025.
• Value: The gold-backed reserves were reported to be near the US$1 billion mark by late 2025. 

The reserves are intended to provide stability to the local currency, which replaced the previous Zimbabwean dollar, which had suffered from severe hyperinflation.