Tag Archives: China yuan gold fix

Russia Stockpiles Gold To Prevent A Currency Attack By The U.S.

“Countries stockpile gold for strategic and defensive reasons — for instance, in case relations between nations are damaged and their currencies lose their value,” Gabriel Rubinstein, a financial consultant and former representative of the Argentine Central Bank (source link is below)

Russia has been accumulating a significant gold reserve for over a decade, along with China and most if not all of the BRIC/SCO/Silk Road countries.  This is a fact that has been either unnoticed or intentionally ignored by the western mainstream media.  Of course, gold is a barbarous relic that just “sits there and does nothing” (Warren Buffet).

The graphic above, courtesy of goldchartsrus.com, shows the monthly gold holdings of the Russian Central Bank.  One has to wonder why Russia is willing to make this information public, unlike China or the United States.  Having said that, I suspect that – like China – the public information does not show Russia’s true gold holdings, which I would bet is significantly greater.  Conversely, it’s commonly accepted by those of us who have studied this issue for many years that the actual amount of physical gold held by the Federal Reserve on behalf of the U.S. is substantially less than the official number.

GATA posted an interesting article from Sputnik which asserts that part of the motivation for Russia making gold a significant part of this currency reserves is to protect itself from currency and financial system attacks from the U.S.

Gold, this eternal financial resource, has a real value if compared to other financial assets. The Russian government believes that it’s better to have more gold resources than dollars. Hypothetically speaking, if Russia holds tons of US dollars and the US wanted to damage its economy, this would be possible through currency manipulations,”  Rubinstein said, adding that gold guarantees against such a scenario (from the Sputnik article linked in the previous paragraph).

Russia has increased the value of its gold reserves by a factor of 10x over the last decade. It has also reduced its euro holdings from 40% of its Central Bank reserves to 26%. Russia has also been aggressively unloading its Treasury holdings.

You’ll note that there’s an inflection point in the graph above (my edit) which shows that the rate of accumulation of gold increased in 2014.  As the Sputnik article points out, this point of inflection coincided with the sanctions imposed by the U.S. and the EU on Russia in 2014.  Senator McCain is currently imploring Trump to ramp up those sanctions.

It’s been my view that the U.S. tried to attack Russia’s currency in 2014 – in conjunction with the sanctions – in order to affect the the value to Russia of its energy exports, as Russia is the world’s largest oil exporter:

The graph above shows the RUS/$ currency pair (from xe.com).  Gold and silver investors are familiar with the waterfall formation that occurred in early 2014.  That plunge in the ruble vs the dollar  has the unmistakable footprints of a currency attack and the U.S. is the only country with motive.

This would explain one of the primary reasons that Russia accelerated the conversion of its dollar and euro reserves in yen.  I would argue that one of the other primary reasons is that, along with China, the gold accumulation activity precedes an eventual re-introduction of gold into the global monetary system.   My fear is that the U.S. is willing to start a global military conflict before it would be willing to let a reserve currency reset occur.

SoT – Jeff Brown In Beijing: Why Does The West Fear China?

There are some serious heavy-weight challenges to the Bretton-Woods economic stranglehold on the world that are happening right now. A lot of events are percolating up right now…that should lead to a more equitable use of the world’s resources now.  – Jeff Brown in Beijing on the Shadow of Truth

China has been aggressively accumulating physical gold for a long time.  Anyone with any modicum of knowledge about the global precious metals market dismisses China’s publicly released 1,778 tonnes gold holdings report as readily as they dismiss the United States’ published gold ownership holdings.

Perhaps the most credible estimate of China’s gold holdings is based on research by Alasdair Macleod.  His research shows that China has been stockpiling gold at its Central Bank for a far greater period of time than is commonly assumed.  Further, he suggests that China holds at least 25,000 tonnes – LINK.

On Tuesday China will begin to price gold on its Shanghai Gold Exchange in yuan.  While no one knows if this will have an immediate affect on the ability of western banks to continue their inexorable manipulation of the gold market, it is likely another methodical move by China toward re-introducing gold back into the global monetary system.

The West, especially the United States’  neocon-controlled Deep State, is facing a global reset that is being engineered by China and Russia that is going to nullify the west’s Bretton Woods-based control of the global financial system.

Several other important building blocks for this reset have been or are about to be put  in place.  The establishment of the BRICS’ New Development Bank, which will open for business this month, is seen as an alternative to the IMF.  The Asia Infrastructure Investment Bank, which recently issued a $750 billion yuan-denominated bond, is funding alternative to the World Bank.

Most important is the imminent introduction by China and Russia of a trade settlement system (CIPS) that will enable participants to by-pass the west’s SWIFT system and to settle their trade transactions without using the dollar.

The Shadow of Truth hosted Jeff Brown, author of the China Rising website.  Jeff has been living in Beijing for several years and offers us a view of China that is not distorted by the heavily manipulated United States’ propaganda-infested news apparatus.