Russia and Gold

Last week I posted a link to a graph in which you could interactively see the gold reserve held by central banks around the world.

We see the western world gold reserves basically do a flat line, but some are accumulating in a rapid way.

One of those countries is Russia.

Russia is basically transferring its position in USD bonds into gold for obvious reasons.

1. Due to the economic sanctions
2. Due to the climbing interest rates that reduces the value of these bonds.

In June of this year, they bought 15.5 tonnes of gold. In July it accumulated 25 tonnes, in August 31 tonnes and this September 37 tonnes was added up to their reserves in favor of US bonds.
In total 108.5 tonnes over the last 4 months alone. And as far as I know the total amount of gold held by the federal bank of Russia is around 2037 tonnes.

This is staggering. What do they know that we don’t. A financial reset maybe?

The US dollar is loosing it’s major role as world currency.

Where are all the US bonds go to? Who are the gold selling nations or institutions that buy US Bond?

Russia, with its strong alliance with China can meet up with all the trade and economic sanctions, which doesn’t seem to harm them, other then the ever growing relation with China which can become strangling for them.

Is China buying the US bonds so the can use it as a weapon to flush the US economy?

It is at least to say very interesting in how this will play out. One thing I know is that the western nations should take care, which the probably don’t. A change in the global financial organization may be eminent.

Enjoy!