Russia Buys Gold Hand Over Fist, As the United States Tears Itself Apart
Russia Buys Gold Hand Over Fist, As the United States Tears Itself Apart by Nathan McDonald – Sprott Money
For as long as I have been writing about precious metals, I have written about the ongoing, unfolding disaster that Western countries are willingly partaking in. The wholesale destruction of their economic foundation and the dis-hoarding of their vital gold reserves.
This has been an ongoing event, since the bottoming of gold in 1999, when it hit $252.80 an ounce, due to the foolishness now known as ” Brown’s Gold Bottom “, which saw both the UK and Canada sell its citizens true wealth, never to have it return since.
Fast forward to today, and despite gold’s sluggish trading pattern over the last few years, you can clearly see just how catastrophic of a move this was, and just how foolish Western Central bankers were, and still are today.
I specifically say Western Central bankers as this bout of stupidity seems to be isolated in predominately Western countries, while Central bankers in Russia, China, India and numerous others continue to buy as much gold as they can get their hands on, consuming every ounce that they can, whenever it hits the market in any large quantity.
Western countries, while Central bankers in Russia, China, India and numerous others continue to buy as much gold as they can get their hands on, consuming every ounce that they can, whenever it hits the market in any large quantity.
Russia is one of these countries, and can you blame them? Surrounded on all sides and facing countless economic sanctions , they have been pushed into a corner and are lashing out however, and whenever they can.
One of the methods of protection that they see moving forward comes in the form of precious metals, most notably, gold.
Since the bottoming of gold, Russia has steadily accumulated as much of the yellow metal as they can, resulting in a rapid increase of their reserves.
Just recently, they have continued onward with this trend, announcing that they have accumulated another 26 tonnes of gold in July 2018 alone, which is roughly $1 billion USD worth of the precious metal on today’s open market.
This massive purchase of precious metals in one single month, is the largest since late 2017 and puts their total reserves at 2,170 tonnes, making them the fifth largest holder of gold in the world.
Meanwhile, turmoil continues to wrack the West, most notably in the United States, where the MSM is actively attempting stir civil unrest in their attempt to see President Trump dismantled and ultimately deposed, no matter the cost.
Quietly and silently, as Russia watches their opposition do their “dirty work” for them, they continue to add real, true wealth, while at the same time liquidating as much as their USD foreign reserves that they can.
Since the start of this year, Russia has accelerated the sale of their USD foreign reserves, going from $96.1 billion in March, to $14.9 billion in May. A truly stunning decrease in holdings.
This officially makes their gold holdings for the first time ever, worth more than their USD foreign reserve holdings, showing that they are putting their money where their mouth is, and possibly indicating where they see the future heading.
Whether or not they are making the correct bet, is yet to be seen, but one thing that I do know is that every form of fiat money, throughout the entirety of history has collapsed and failed, while precious metals have stood the test of time, enduring and protecting their holders from whatever disaster or calamity that may befall them.
I know where I’m placing my bets, how about you?