Russia Adds A Record 1.2 Mil Ounces Of Gold To Its Reserves
Another story of a country that the US is at war with (in one form or another) that is adding gold to its holdings. Russia has been making the most waves recently by challenging the Petrodollar. We also continue to hear the country upping its gold holdings. The chart below courtesy of Sharelynx show the magnitude at which they are doing this.
In no time displayed in this chart, and we can assume ever, have Russia added as much gold to its holdings as they did last month (September 2014)!
What does this all mean? Probably nothing short term but we can be sure that the shift in power has already began and shows no signs of slowing.
It is a monthly savings plan. Nothing more.
Bird….I believe they are doing what china & other countries are doing , getting rid of their US dollars while they still can…..
And why not. They both had too many dollars on hand. China was clear that they considered their volumes of exchange a burden and said they would diversify. The Russians meanwhile are parting with mountains of dollars to defend the Ruble. But that is just fine since dollars are currently in demand with all the capital flowing back to US markets. You cannot buy real estate in New York with bags of Yuan either. This is just one example of why dollars are needed. Debts are denominated in them is a second. It is actually convenient that the Russians are selling dollars because there is not currently a shortage of buyers especially as the buck has been appreciating.
Bird….the buck has been appreciating…..The PPT comes to mind…but then what do I know !!!
How to open a Guinness with one hand!
Just kidding!
He does it with his teeth like any good Irishman would!
Well the look of that chart from Goldchartsrus.com certainly has the feel of a dramatic change in the works. All those gold colored bars against a blue backdrop might imply something really out of the ordinary was happening.
But a simple line chart would probably have sufficed. What we are basically looking at here is an accumulation of approximately 2.5 tonnes of gold per year spread across nine years.
That is how long it took for Russia to double it’s reserves and today their holdings are just modestly higher than Libya’s Mohamar Gaddafi hoard before his downfall. And most of that gold was acquired well before problems in Ukraine or Crimea or the wildly popular internet narratives that Russia was about to destroy the US dollar.
I would suggest that what we see in this chart is merely that the Russian Central Bank has been responding with diversification policies to the steep decline in the US dollar that began in 2001 and that the acquisition policy is still in force.
Yes, they did add the largest single purchase in the last month but prices were favorable compared to what they bought and paid for in 2010 so it is only averaging down from that perspective.
I don’t see any big plot to destroy the petrodollar here.
Bird….They are not trying to destroy the petrodollar….They are merely hedging against the collapse of the dollar as the worlds reserve currency..IMO
What time is it over there? Evening, right?
Hi AL….If that questing was aimed at me …It is now 20:10……or put another way….
GUINNESS TIME…haha
BTW….not sure what time it is for Bird.
Red wine Mr. Irish, Red wine!
It’s cricket time, Al. They come out at night with the frogs and make a damnable racket sometimes. Later on the Hyenas make their appearance as they hunt for household pets. The bats are flying too picking off the bugs that are still buzzing around. You can’t hear them but I can see them by moonlight and they look pretty big. Fast too. I just keep my head down if I am out there and pull the hat on a little tighter.
Bird…I would sure like to experience that at some time…..The sounds of Africa at night….Here were I live all we hear is the screeching of damn seagulls, there is a plague of them in Hastings….I hate the f$&%£&s
Really sounds like an interesting place, Bird!
It is a great place guys. There is hardly any air pollution because there are hardly many vehicles or heavy industry. Just millions of stars at night and no street lights or big neon signs to block it all out. We ride by horse and buggy around here. If I had no internet I would be cut off in a totally different world where stone age tradition trys to meld with modern world technology. The booze is dirt cheap and the women could make you cry. It’s all good and fine though until you get sick. Guess you take the good with the bad. But if I had anything serious I would have to fly out to Europe for treatment because they are just not set up to deal with anything too severe here. It’s part of why life expectancy is so low. There are not many old people here. The whole place seems like everyone is 21.
Bird, I agree the Russians are mearly continueing “a monthly savings plan”, good timeing to reduce dollars into strength as well.
But, from what I have ben reading the Russians intend to do away with the dollar as much as they can.
I believe the Russians think the strength of the U.S. is the dollar, the fewer the world uses the weaker less influential the U.S. is and stronger or more influential the Russians become.
It may take awhile, but the U.S. will lose the reserve currency eventually. imo anyway.
Fellas, the whole world is going to asset backed currency. The BRICS is a financial system in its self. The petro dollar is done. The dollar is just ” one of ” the reserve currencies now. The new monopoly board is about to open! Get ready cause here it comes….
The Fat Lady is in the dressing room…..show starts soon!