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

  • 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 …
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…

Russian Gold Reserves 2006-2018

Russian Gold Reserves 2006-2018

Source: Goldchartsrus.com - Click to enlarge

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

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.

 

U.S. Treasury securities held by Russia 2015-2018

U.S. Treasury securities held by Russia 2015-2018

Source: Bloomberg - Click to enlarge

The end of the dollar reserve standard and the petrodollar and the flow of gold from the West to East and what this what means is something we covered in the latest Goldnomics podcast:
Full story here
Mark O'Byrne
I founded GoldCore more than 10 years ago and it has been my passion and a huge part of my life ever since. I strongly believe that due to the significant macroeconomic and geopolitical risks of today, saving and investing a portion of one’s wealth in gold bullion is both wise and prudent.
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