The Gold Telegraph
MAR 26, 2018
Actual gold-backed currency. The pinnacle of sound currency policy, the paradisiacal dream of the Austrian economist, the sunlight-to-vampire horror of the current US administration.
Russia’s central bank gold spree has gone largely unnoticed. Far from the hue and cry of trade war hysterics, they are positioning themselves well to ally with China to roll out real gold-backed futures.
The US’s overhang of debt and looming trade war is worrisome on many levels as the value of the dollar keeps decreasing and the national debt spiraling. So, what should we make of the fact that the Central Bank of Russia has been steadily amassing vast gold reserves since 2015? By the end of 2017, its total gold reserves rose to 1,828.56 tons, usurping China’s place as the country with the fifth largest gold reserves.
Russia has been aggressively increasing its gold reserves for a reason. It has seen the US dollar dominate as a global currency and is working with China to end the US/Western currency supremacy. Their strategy appears to be working. Russia and China are in the midst of rumors of introducing gold-backed futures to circumvent the U.S dollar.
The US dollar has had no gold-backing since 1933, nor has the US increased its gold reserves for a decade.
Russia’s financial strategy is making the country less vulnerable to volatile geopolitics. Not only is it a significant player in gold, but it is also the world’s third-largest gold producer, with the Central Bank of Russia buying up its supplies. During the past decade, Russian has mined more than 2,000 tons of gold, with tonnage expected to increase by 400 tons annually by 2030.