Russia Buys 600,000 oz Of Gold In May After Dumping Half Of US Treasuries In April

June 21, 2018
  • Russia adds another 600,000 oz to it’s gold reserves in May

  • Holdings of U.S. government debt slashed in half to $48.7 billion in April

  • Keeping money safe’ from U.S. and Trump – Danske Bank

  • Trump increasing the national debt by another 6% to $21.1 trillion in less than 18 months

  • Asian nations accumulating gold as shield against dollar devaluation and trade wars

  • Russia dumps Treasuries for gold and in a Trade war China and others may do the same …


Source: Goldchartsrus.com

Bloomberg, Reuters and other media are now reporting that Russia dumped Treasuries in a major way in April and today comes news that Russia bought another 600,000 ounces of to add to its already sizeable and growing gold reserves.

This is something we have written about since 2004 and have spoken about on Bloomberg TV, CNBC etc for many years.

It is not just Russia that is diversifying into gold in recent months and years. India, Turkey, Mexico, Iran, Kyrgyzstan, Kazakhstan, Belarus, Uzbekistan, Tajikistan, Mongolia and of course China have been increasing their gold reserves.

Trump’s erratic and risky economic and foreign policies pose a risk to the dollar as the reserve currency of the world.

The deterioration in the US fiscal and financial position has been happening slowly for many years but accelerated under Bush II and Obama. Trump inherited a heavily indebted U.S. with nominal debt just under $20 trillion (19.9T). In just 17 months this has increased by another 6% to $21.16 trillion. There are unfunded liabilities of around $100 trillion…

We are moving to a multi polar world which will see China become a more dominant player and Trump is exacerbating this trend.

Source: Bloomberg

The risk for the US and global economy is that if trade wars intensify with China, Russia and other nations then this trend may deepen. This would likely lead to a lower dollar, higher interest rates and much higher inflation.

It is creating a very bullish scenario for gold and the present bout of weakness presents a buying opportunity for value minded investors to diversify and accumulate gold while it remains weak.

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Mark O'Byrne is executive and research director of www.GoldCore.com which he founded in 2003. GoldCore have become one of the leading gold brokers in the world and have over 4,000 clients in over 40 countries and with over $200 million in assets under management and storage.We offer mass affluent, HNW, UHNW and institutional investors including family offices, gold, silver, platinum and palladium bullion in London, Zurich, Singapore, Hong Kong, Dubai and Perth. 

The first use of gold as money occurred around 700 B.C., when Lydian merchants (western Turkey) produced the first coins