Altimari links gold demand to debt concerns and frozen assets
Banca d'Italia Deputy Governor Sergio Nicoletti Altimari outlined how geopolitical tensions and high public debt drive structural changes in gold demand. Speaking in Sorrento on October 5, 2026, he confirmed Italy retains 2,450 tonnes in official gold reserves as a safe haven.
Frozen reserves and debasement trades
Central bank purchases and large ETF inflows have transformed global gold demand since 2022.
Altimari pointed out that the freezing of Russian foreign assets highlighted the vulnerability of currency reserves held abroad, while high public debt and fiscal expansion in major economies fueled the “debasement trade.”
These forces substantially weakened the traditional inverse relationship between gold and real yields across 2025 and early 2026.
Altimari emphasized that the absence of credit and default risk distinguishes gold from other assets, noting that it is “no one's liability.”
The 2,450-tonne anchor
Italy ranks as the fourth largest official gold holder globally, maintaining 2,450 tonnes.
The reserve expanded from the late 19th century through post-war export surpluses, recovering from World War II losses caused by Nazi confiscations.
When other central banks liquidated gold holdings in the early 2000s due to stagnant prices and zero yields, Banca d'Italia retained its entire stock as a strategic balance sheet asset.
Vindicated by geopolitical fracture
Retaining bullion reserves proves prescient as geopolitical fractures and debt concerns mount.
Acknowledging that frozen foreign assets drive gold accumulation confirms the fragmentation of global reserve currencies.
However, rising price volatility will test gold's capacity to serve as a reliable balance sheet anchor.
Source: Gold between Continuity and Change
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