Economic
Warfare!
Russia
turns up the Heat!
Ending the G-7 ability to manipulate gold prices?
Russia To Begin Trading Gold On St. Petersburg Exchange
Russia, the world’s second-largest gold producer, is to free itself from the current dependence of gold prices on the London Stock Exchange (LSE), and plans to launch gold trading on the St. Petersburg Exchange (SPIMEX) by the end of the year. One of the main objectives of the exchange when launching a new market is to ensure the formation of representative indicators of a competitive market price. Until recently, gold market participants relied on price benchmarks set by the LSE. Now, the LSE will face competition.
We noted the gradual movement away from Western-based trading and research facilities with the Russian establishment of the Institute of Oil & Gas Initiatives which is partially designed to be a competitor to the American Petroleum Institute. In this case, the United Kingdom doesn’t produce any gold, whereas Russia has significant reserves of the metal.
Russia is not only one of the largest gold producers but also stores its own gold in Russia.
This means that Russian gold purchases for storage in its own reserves,
instead of storing currencies from unfriendly countries, has become an important step towards de-dollarization and financial independence.
As a result, Russia may be able to reduce its dependence on the prices of precious metals issued by the London Stock Exchange.
Russia already has its own gold exchange at the Moscow Stock Exchange, which has a large physical metal trading section, used by both banks and the Central Bank.
The duplication of the exchange in St. Petersburg will be also be open to BRICS countries and their traders and creates an alternative to Western markets which as has been noticed by other Central Banks, have demonstrated their ability to both freeze and sell assets that do not belong to them.
No comments:
Post a Comment