Lebanon, with one of the largest gold reserves in the Middle East, is considering using its gold stockpile to revive its economy amidst ongoing inflation and state decay. The country’s financial sector suffered about $70 billion in losses, with banks collapsing in 2019, pushing half the population into poverty.

The price of gold recently hit an all-time high of $5,354, driven by geopolitical instability and hints of interest rate devaluation by the U.S. president. Lebanon’s central bank holds 286 tons of gold, second only to Saudi Arabia in the region.

Lebanon is debating whether to use its gold reserves to bail out banks and compensate depositors, a move that would violate a law dating back to the 1980s. Some propose using a small percentage of the gold for public good, like improving healthcare or electricity.

Despite proposals to use gold reserves, Lebanon’s parliament has not taken any action. The majority of Lebanese people are wary of authorities and prefer not to touch the gold, viewing it as a safety net for future generations.

Lebanese depositors, who lost savings during the financial crisis, are turning to gold and silver as a tangible asset to make up for their losses amidst uncontrollable inflation and lack of reforms. Gold is seen as the only secure investment in Lebanon’s volatile economy.

The tradition of owning gold as a hedge against inflation has deep roots in Lebanon, with many citizens turning to gold jewelry as a form of wealth preservation. Women especially see gold as a form of security during financial crises, refusing to sell their collections even when prices rise.

Read more at Yahoo Finance: Cash-strapped Lebanon finds itself sitting on a gold mine, as precious metal prices surge