The Role of Gold in War – From the 1600s to Today

Gold has not only been a form of savings. In times of war and crisis, it has played a decisive role in securing states’ power and economic survival.

Banks and the Early Wars

As early as the 1600s, banks such as the Bank of England were founded to finance wars. Gold became a guarantee of the state’s credibility and a way to build trust both domestically and abroad. During the 1700s and 1800s, this development continued, with France among others using gold as the basis for strengthening its military and economic power.

During World War I, gold became a strategic resource. Central banks built up reserves to signal economic strength, while gold coins were withdrawn from the public. When convertibility ended, it became easier for the state to take control of assets.

The Depression and World War II

In the 1930s, gold became a matter of survival. Countries such as the United Kingdom and the United States abandoned the gold standard to save their economies, while others kept gold as a final safeguard.

In countries close to geopolitical risk, such as Poland in the 1930s, state gold reserves were explicitly viewed as a national defense safety net.

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Postwar Period and Beyond

After World War II, gold took on a less visible role. The Bretton Woods system and later the dominance of the dollar pushed gold into the background.

But from the early 2000s, interest began to rise again. Many central banks – especially in emerging markets – started buying gold to reduce their dependence on the dollar and strengthen their economic security.

And the trend has only continued: central banks have bought around 710 tons of gold so far in 2025, of which 166 tons were in the second quarter alone. According to Metals Focus, total purchases this year are expected to approach 1,000 tons – which would mark the fourth consecutive year at record levels.

A Short Summary

• 1600–1700: Banks were created to finance wars with gold
• Early 1900s: Gold reserves secured economic credibility
• After 1945: Gold declined in importance but returned in the 2000s

The Importance of Gold Today

History shows that gold is not only an investment. It has been a strategic tool for nations in war and crisis – and it still serves as a safeguard in uncertain times.

At Tavex you can buy investment gold in both coins and bars. It is the same metal that for centuries has provided states, investors, and collectors with security when it was most needed.