Russia Continues To Dump Dollars And Buy Gold

The enormous effort by eastern hemisphere countries to diversify their reserves out of the dollar and into physical gold is quite remarkable.  The latest reports out of Russia show that is has cut its dollar exposure in half since January 2014 and appears to be accelerating its accumulation of gold:

OUT OF DOLLARS (source:, U.S. Treasury):




Meanwhile, physical gold held in western custodial accounts at Central Banks and trading exchanges continues its exodus.

Koos Jansen has reported that custodial gold at the Bank of England dropped another 351 tonnes in the latest reporting period: Bank of England Custodial Gold Drops 351 tonnes

Craig Hemke of TF Metals Report did some sleuth-work on the Comex vault data and discovered that over 37 tonnes of gold was removed from Scotia Bank’s customer custodial account at the Comex:   Investor Gold Flees Scotia’s Comex Vault

Finally, since February 11 this year, over 72 tonnes of gold has been removed from the GLD trust.  The only way gold is removed from the GLD trust is if any of the Approved Participant banks – the usual suspected criminals – redeems 100,000 share baskets of GLD stock in exchange for physical gold bars held in Trust.   In fact, I have heard reports from several credible sources in London that big investment accounts which have tried to exchange shares for gold have been denied.  If you read through the fine-print of the GLD prospectus, you’ll find that the Trustee indeed has the option of denying exchange for physical requests.

The big question in my mind – and one which we’ll never know the answer to until it’s too late for the victims- is whether or not the gold being removed from custodial accounts held at banks, Central Banks, exchanges and GLD is being delivered to their rightful titled owners or if its being hypothecated by the bullion banks and shipped to the east.

I have a instinctual belief that when the “gold grab” begins in earnest in the west, and the trusting entities/individuals who trusted their gold with criminal bullion banks look to take delivery, we will find that “Mother Hubbard’s Cupboard is bare.”

We are in an era in which Rule of Law has been replaced by Rule By Those In Power.  There is no accountability for the wealthy elite and, and the political puppets of those elite, as they continue their massive theft of wealth from the western economic and financial system.

9 thoughts on “Russia Continues To Dump Dollars And Buy Gold

  1. Correct me if I’m wrong, but if you deposit a worthless check to cover a check you’ve already written, isn’t that considered check kiting and usually results in prosecution?

    ” GLD is being delivered to their rightful titled owners or if its being hypothecated by the bullion banks and shipped to the east.”

    But when a central or bullion bank does it, this is known as hypothecation?

    Am I missing something here, or is this the same thing phrased differently?

  2. “All of us here at the policy making level of the foundation have at one time or another served in the OSS [the Office of Strategic Services, the forerunner of the CIA] or the European Economic Administration, operating under directives from the White House. We operate under those same directives…The substance of the directives under which we operate is that we shall use our grant making power to so alter life in the United States that we can be comfortably merged with the Soviet Union.” Rowan Gaiter to Norman Dodd 1953


  3. Dave,

    Are you saying that a large majority of the wealthy, even those close to the 1%ers, are going to get cash settled at the previous day’s bogus price, the day that the PM’s get their long awaited moonshot (ie. massive report of China’s true gold reserves)? It seems to me that even the ultra-wealthy pricks are thinking that the gold is there to back their certs (paper gold) when to us, it’s obviously the price suppression scam of the century. Have a great weekend!

    1. It is a safe bet that the people doing the hypothecating are not hypothecating the gold that they personally own.

  4. Sir I understand that you are upset that we are offering you a cash settlement for your gold that it is well below the current spot price but have you read paragraph 8 on page 67 of the prospectus?

  5. That is interesting to see Russia switch to the gold standard. Are they the only ones, or are other countries switching from cash to gold? I can envision how a private person would make this conversion. However, it seems like a really big effort when a nation is changing out its currency.

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