To diversify their reserve positions, nations all over the world are rapidly purchasing gold. A shadow gold standard is the result of this trend and the substantial reserves held by the IMF, the Eurozone, and the United States.

Utilizing the ratio of gold to GDP is the most effective method for comparing various nations' shadow gold standards. Using official data, this gold-to-GDP ratio can be easily calculated and compared across nations to determine where the real power of gold lies.

The 19 nations that are part of the Eurozone and issue the euro are the big winners—the true global center of gold power. Their gold consumption is greater than 4% of the GDP. The ratio in the United States is approximately 1.7%.

Russia's ratio is interestingly about 2.7%. Despite having more gold than the United States, Russia's economy is only one-eighth as big as the United States, so the ratio is higher. Russia is one of those countries that is buying more gold, and it seems like it wants to do the same as the Eurozone. Despite having significant economies, Japan, Canada, and the United Kingdom all have gold ratios of less than 1%.
China is the case that is most interesting. As of July 2015, 1,658 tons of gold were reported to be in China's official reserves. However, their actual gold stock is closer to 4,000 tons, as we are aware of from a number of trustworthy sources, such as import and mining production statistics. In addition to official sources, I have consulted refineries and secure logistics companies, which are actual gold handlers, and included their data in my estimates. In general, there is sufficient reliable data to at least provide some basis for this estimate. Additionally, it is entirely possible that China has significantly more gold than 4,000 tons.

In order to achieve a ratio that is comparable to that of the United States and Europe, China, like Russia, is purchasing gold. When the monetary system collapses, the gold-to-GDP ratio will be crucial because it will serve as the foundation for any new monetary reset and the new "rules of the game."

As I have outlined, nations will gather around a table during any monetary reset. That meeting could be compared to a poker game. You want a lot of chips when you sit down at the poker table. In this setting, gold functions like a stack of poker chips. The world does not automatically adopt a gold standard as a result. It does imply that one's ability to speak at the table will depend on how much gold one has.
Official gold only amounts to about 35,000 tons worldwide. Gold held by central banks, finance ministries, and sovereign wealth funds is referred to as "official gold."This does not include gold held in private hoards or as jewelry.

Over the past seven years, China has acquired over 3,000 tons of gold, which accounts for almost 10% of all official gold in the world; a significant increase in China's gold reserves. China's lack of transparency is explained by this buying program. There is little trading on the gold market, which is liquid. The gold price is likely to be significantly higher if China's intentions and actions are fully disclosed. When a significant buyer enters a competitive market, this is always the case. China wants to keep the price of gold as low as possible until it finishes its program of acquisitions.

China is attempting to acquire sufficient gold so that, in the event of a global monetary collapse, China will have a prominent seat at the table. Along the walls, countries with low gold-to-GDP ratios, such as Canada, Australia, and the United Kingdom, will be seated away from the table.

These small gold powers will essentially watch as the global monetary system is reset, and they will have to accept whatever system the United States, Europe, Russia, and China come up with. The new system will be based on an IMF-managed U.S., German, Russian, and Chinese monetary condominium because Germany will speak for Europe. These significant gold powers are already preparing for this possibility.