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Russia Should Overtake China’s Gold Holdings in January 2018

As we have reported on a number of occasions Russia has been moving ever closer to 6th position in global gold holdings and she is now within a handful of tons of physical gold to achieve the next step. 

Russia added a recorded number of tons of gold to her gold holding in 2017 with 223 tons added to the central bank’s gold reserves. Please keep in mind that Russia has agreed to sell China between 80 and 100 tons of gold on an annual basis, so that would be in addition to what Russia added to her gold reserves. This means Russia has either been acquiring more than is being reported or she is mining more than is known about. It has long been accepted that Russia mined approximately 250 tons gold annually but these numbers seem to create an imbalance in the number of tons being mined or the number of tons being acquired on the open market.

Russia has made their intentions clear that she wishes to move away from the Federal Reserve Note payment system and sees it as a threat to their national security. This is the number one reason for acquiring gold that will eventually rebalance their books with a much smaller holding of U.S. debt (bonds/treasuries). 

DYI:  When the global reset for world currencies occurs Russia will have a seat at the big boys table not only due to her gold horde their household debt (13.5%) and government debt (17%) to GDP is well positioned to weather any economic storm.  Plus the Russian central bank is maintaining interest rates greater than inflation that will encourage a paying down of household debt further strengthening the Ruble.  On a monetary basis Russia is doing an A+ job what needs to happen Russian political elites encourage small business formation.  Russian citizens need their version of the American Dream; small business formation is that ticket.

DYI