Managing your gold reserves is an important part of running your nation’s economy in Victoria 3.
Your nation’s gold reserve can be thought of as a physical stockpile of cash. After paying off all debt and expenses, all the net income of your nation is used to increase the size of gold reserves.
Similarly, if your expenses exceed your net income, money is liquidated from your gold reserves to be used.
How to increase your gold reserves in Victoria 3
To stockpile gold reserves, your nation’s net income must exceed its expenses. Following are a few tips to stockpile gold reserves.
Manage a weekly income balance
All your expenses and incomes are calculated on weekly bases in Victoria 3. The result of these calculations will cause either an increase or decrease in the size of your gold reserve depending on your expenditure and earnings.
This also implies that any investment you make will have a weekly return. If your weekly balance ends up as negative, the required balance will be paid off using your gold reserves. If your gold reserves run dry, this amount will be added to your debt.
Check your gold reserve limit
For every nation, there is a limit on the maximum amount of cash they can have in their gold reserve. This limit is a “soft cap”. This means increasing the size of your gold reserve will take more and more money as it grows bigger.
This means if a nation’s gold reserve reaches a large size. An addition of 15k to the gold reserve might only increase its size by 5k. Therefore, money is being wasted in this process. Hence it is better to spend the excess money (the gold reserve) rather than holding it to no avail.
Bankruptcy occurs when your nation drowns in debt with no way to play it off. Declaring Bankruptcy should be your last resort. The following are the consequences of declaring Bankruptcy:
- For the next 10 years, your loan interest rate increases by 50%.
- For the next 10 years, you will earn 50% fewer prestige points.
- For the next 10 years, your troops will have a 50% decrease in their defensive and offensive power
- You will lose all your gold reserves.
- For the next 10 years, administrative areas will have 50% less construction efficiency.
- Living standards get lowered in your nation.
- The number of radicals increases in your nation.
- Shareholders become unhappy.
Hence, avoiding Bankruptcy should be your top priority if you want to stockpile your Gold Reserves in Victoria 3.
Downsides of stockpiling gold
Remember the concept of overdraft in the bank, The Gold Reserve is serving the same thing in Victoria 3. It is just a soft cap to balance out the excess expenses and savings.
Victoria 3 has a handy system introduced that allocates a weekly gold limit on the economy of the country.
Saving the excess Gold is right but at the same time, saving more than your expenses comes with the drawback of losing money.
Buying Gold above the Gold Limit will make it more expensive gradually. One such example is that once the Gold prices have risen, you would only be able to buy $23k worth of gold from the $32k.
The reason behind the Gold Price increase is to discourage the bigger economies from stockpiling gold. Due to the increased Gold prices. The small economies would then not be able to buy the gold they need to stay above water.
Therefore, it is not economically wise to stockpile gold more than the needs of the economy.