Russia Accelerates Gold Buying Spree as US Threatens More Economic Warfare
Russia is back to buying gold
If you aren't convinced that hopes of a possible US-Russia detente have all but vaporized, this should clear up any lingering doubts:
Russia gold buying returned in January with the Russian central bank buying a very large 1 million ounces or 37 metric tonnes of gold bullion.
The increase in the gold reserves came after Russia did not buy a single ounce in December – a move seen as potentially a signal or an olive branch to the U.S. and the incoming Trump administration.
Just yesterday we wrote about Russia's "gold ruble" concept. Over the last three years, Russia has launched a massive gold buying spree in order protect its economic interests — especially the value of the ruble — from western economic warfare.
The ruble is the most gold-backed currency in the world, and Moscow sees its gold reserves as a safeguard against a western attempts to destabilize Russia's economic and financial viability.
As they sharply increase their gold reserves, China and Russia are selling off their U.S. Treasuries, with their hunger for the metal coming amid a strict diet excluding dollars. Gold is appealing to these countries because it shields them from the U.S. government's ability to control the value of their holdings. Gold is a country-less currency. A continuing trend of reserve buildup and Treasury sales might weaken the dollar and pressure gold prices higher.
China and Russia have officially added almost 50 million ounces of gold to their central banks while selling off more than $267 billion of Treasuries.
Apparently it only took a few weeks after the election to realize that this was a pipe dream.