Gold

Gains more Respect

Russia Bought Another 200K Ounces Of Gold Right Before The Rally

Russia continues to add gold to its reserves, buying another 200,000 ounces or 6 tonnes of gold in May, according to the country’s central bank. 

During the last decade, Russia’s gold reserves have gone from 2% to 19% as of the end of 2018 Q4, according to the World Gold Council’s data. 

Some analysts suggested that the 

reason behind this increased interest 

in the yellow metal has been a trend 

to diversify away from the U.S. 

dollar. 

“I think what Russia is doing, or other central banks are recognizing, is that they need to increase their gold reserves because of the impending dollar crisis,” Euro Pacific Capital CEO Peter Schiff told RT last month.

DYI:  Wonder why all of the Russia, Russia, Russia talk??  The American empire and the almighty dollar will no longer be the reserve currency for the world.  The U.S. will remain a powerful country however its days of commanding anyone and everyone [countries] will be over.  The U.S. dollar is only backed up by the full faith and credit of the U.S. economy.  As our standard of living for average John and Jane Doe continues to decline; so will the value of the dollar as an excepted medium of exchange for worldwide trade.

This will be a one to two decade event.  A grinding down process historians will mark the beginning of the end for the American dollar as the world’s reserve currency.  It will be shared with gold trading platforms along with its lesser cousin silver as a medium for world trade.  No longer will the U.S. be able to pay for its imbalance of trade by having nations recycle their dollars into treasury securities.  They will demand gold or made legal their ability to purchase corporate assets here in the States.  They will demand something of value not printing press treasury securities.

 

Again this will be a slow grinding affair just as England with the British Pound was the reserve currency the move to the dollar was around a two decade or so process before the American dollar was declared in international circles as the new reserve currency.  So far it appears that gold will once again be the reserve currency that no nation will be able to command.

DYI