As gold surges above $5,100 for the first time in history, continuing a monster rally that remains astonishingly unstoppable, the IMF has published a long blog praising the metal’s “scarcity, durability, and trust” in spite of crypto’s popularity.
The IMF’s words: “Why does gold still hold value?” Their answer? Because it always has. Because it still works. Because it’s still trusted.
For over 5,000 years, humans have used gold as currency, as jewelry, as religious tribute, and as a store of value. The IMF said:
“Gold has functioned as currency, ornament, reserve, and metaphor—embodying the human desire for permanence in a world of change.”
That hasn’t stopped, even in the age of Bitcoin, AI, and central bank digital currencies. The IMF is asking why gold still matters, and the answer is in every part of history.
Lydians mint coins, then empires turn gold into power
Long before there were banks, the Lydians minted gold coins in the 7th century BCE. Ancient Egypt saw gold as divine, and Rome tied it to eternity.
The IMF points out it was perfect for money because “it did not rust, could be stored indefinitely, and existed in limited quantities.”
Also, the geopolitical part matters heavily too. As the IMF pointed out, sanctions and frozen reserves have made the U.S. dollar a weapon. Countries like Russia and China are loading up on gold to escape that risk.
China now holds over 2,300 metric tons. India is near 800. The IMF called gold a “sovereign shield.” No other asset sits so far outside of anyone’s control.
By the 1800s, gold had become the foundation of the world economy, as the British pound was backed by gold, physically held in the Bank of England’s vaults.
“This system, adopted by much of the industrial world, imposed fiscal discipline and constrained governments from printing excessive money. It fostered confidence in international trade and investment by guaranteeing stable exchange rates. Yet the same rigidity that ensured stability also bred fragility,” said the IMF.
When the economy collapsed during the Great Depression, being tied to gold locked the system in place. Prices fell. Unemployment exploded. And because they couldn’t print money freely, the collapse got worse.
So, by 1944, countries tried a new method: Bretton Woods. The U.S. dollar was pegged to gold at $35 per ounce. All other major currencies were tied to the dollar.
But by the end of the 1960s, it cracked. U.S. spending (especially on the Vietnam War) blew past limits and the fixed rate couldn’t survive. In 1971, President Richard Nixon ended official gold convertibility. The gold standard died.
Crises have always pushed gold prices higher, and central banks are hoarding it again
In the 1970s, when oil prices exploded and inflation spiked, gold surged 20x. Then in the 2008 crash, as credit markets froze, gold broke $1,000 an ounce. Then, in 2020, with the COVID chaos, it hit almost $2,000.
Between 2023 and 2024, central banks in China, India, Turkey, and Poland bought over 1,100 metric tons.
That buying spree pushed gold prices over $4,000/oz. Throughout 2025, Cryptopolitan reported that global gold holdings surged by around 40%, the largest yearly rise since 1979, and US ETFs also grew by more than 50% to almost $200 billion.
IMF acknowledges that Bitcoin is a decent match for gold
The IMF’s blog then directly tackled the idea that Bitcoin is “digital gold,” saying sure, it has a fixed supply of 21 million coins, but it’s digital, volatile, and needs internet and electricity to exist.
Gold, the IMF writes, is a “physical reality, immune to code failures or regulatory bans. It doesn’t help Bitcoin’s case that it has failed to pick up on gold’s rally this past year. After hitting a new record of $126,000 last year, it has remained stuck way below $100,000. At press time, Bitcoin is worth $85,888.
“Gold endures,” the IMF said, “not because of intrinsic utility, but because of the trust we place in its uselessness.” That’s Robert Mundell, the economist who understood gold better than most.
The world mines only about 1.5% more each year. And every single ounce ever mined (roughly 210,000 metric tons) still exists in some form. It’s nearly indestructible. There’s no other asset that lasts that long without losing its value.
“Financial innovation from tokenized gold on a blockchain to AI-driven trading platforms may redefine how gold is owned and exchanged. Yet beneath these technological layers, gold’s essence remains unchanged,” said the IMF.
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