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Russia and China ‘Furiously’ Buying Up Gold

January 20th, 2015

china golden dragonMac Slavo: A larger global currency shift is underway.

And it may be happening much more quickly than anyone has realized.

Things are definitely in motion. Call it a game of musical chairs, or an exercise in rearranging chairs on the Titanic, or just that a tilting balance of power. Just don’t make the mistake of thinking this is all routine.

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As Michael Snyder just reported:

The absolutely stunning decision by the Swiss National Bank to decouple from the euro has triggered billions of dollars worth of losses all over the globe.

[...]

And these are just the losses that we know about so far.  It will be many months before the full scope of the financial devastation caused by the Swiss National Bank is fully revealed.  But of course the same thing could be said about the crash in the price of oil that we have witnessed in recent weeks.  These two “black swan events” have set financial dominoes in motion all over the globe.  At this point we can only guess how bad the financial devastation will ultimately be.

The key to understanding how the hammer will fall may lie in: gold.

In the material world that governs politics and economics, there has always been one golden rule: he who has the gold makes the rules.

Put China at the top of the next generation of rule makers, then.

China has been quietly stockpiling gold for years now. In fact, it is stockpiling so much gold that many have speculated that it may be building a gold-backed yuan currency that would make the Dollar pale in comparison on the global market.

Bottom line: no one knows just exactly how much gold China has amassed:

Buying surreptitiously allows Beijing to buy bullion at bargain prices; if the world knew how much gold China was really amassing, a run on gold the likes of which the globe has never seen would likely ensue. “We believe China is controlling the gold price because it is buying in such a way so as not to push prices up.” That’s the opinion of respected precious-metals analyst Julian Phillips of The Gold Forecaster, along with a host of other informed sources. (source)

It is widely believed that China has accumulated larger – possibly much larger – reserves since. (source)

Lots of other countries are rapidly buying up gold, too, including – Serbia, Greece, Ecuador, Mexico, Kazakhstan, Kyrgyzstan, and Tajikistan.

But reportedly no one is buying gold at a faster pace than Russia.

Back in August it was reported that:

Russia’s increase is the most dramatic, according to the recent report from the IMF. The Russian central bank has almost doubled its gold holdings within the last 5 years to 1,094.8 tonnes in June of this year. China’s Central Bank followed with an increase of 75% from its holdings in 2009.

Bloomberg reported in November:

The country has tripled its gold reserves since 2005 and is holding the most since at least 1993, IMF data show.

There is little doubt that gold plays a major factor in Russia’s posturing during a global showdown that involves proxy war and military tensions in the Ukraine, Syria, Iraq and other parts of the globe.

Moscow’s purchase of bullion and the assault on the bank can be seen as tactics of a single strategy designed to break the monopoly of the dollar. Gold is Russia’s hedge against that hegemony; it can’t be hacked.

More than that, Putin has been positioning his motherland to team up with China to solidify the emerging BRICS system which aims to thwart decades of Anglo financial dominance with a un-dollar currency system that will also include a development bank.

Russia’s response has been to buy gold and turn east, cementing deals with China and, it would seem, firing the opening salvos in a cyber currency war with the U.S. (source)

Warnings have sounded about a tipping of the global balance:

Russia is also increasing its gold reserves. China and Russia have been exchanging their U.S. dollar reserves and buying physical gold. Last year we speculated that this dynamic would create a shortage in gold leading to much higher prices. Russia and China now rank in the top ten countries by gold reserves.

With Russia now in what appears to be a currency war with the U.S., they may find a willing partner in China to create an alternative international financial system that does not rely upon or use the dollar. Irrespective of either country’s intentions, their physical gold buying sprees continue unabated. (source)

To that end, Russia has been amassing as much gold as possible, in a bid to outmaneuver its enemies in a silent economic war to hold onto its independence and further project its status.

Nearly every bit of gas and oil that Russia sells to neighbors in Europe and Asia is converted from dollars into gold reserves – and even with the collapsing oil price, that amount could still be staggering.

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  1. wesc
    August 2nd, 2015 at 01:31 | #1

    @Estelle Mainard
    I would trade it in for silver Estelle , heres why :
    Like the article says, he who controls the gold supply makes the rules.
    Who makes the rules now? He who controls the money supply or the FRN.
    Don’t think for a minute that the Federal Reserve and its shareholders didn’t see this coming back in 1971 when we went off the gold standard.

    When we went off the gold standard, it basically did 3 things :
    1)it gave the Federal Reserve freedom to print money at will.
    2) it allowed the creation of the petrodollar.
    3) and it relieved the pressure to audit gold reserves.
    Speculation at the time was that they didn’t have enough gold to cover their money supply. I think it was the other way around…they did have the gold, and much more than they wanted anyone to know about.

    These money lenders didn’t get to where they are now by investing in 5 year terms…they look ahead up to 100 years and maybe even longer.
    They knew the fiat dollar system would burst eventually, and that we would slide back into the gold standard.
    So when China revalues their Yuan against gold, of course their Yuan will increase in value and place them in prime position to be the new world trade reserve currency.
    Currently China is estimated to have 4 trillion in total reserves ( Gold and USD ) 10 times more than the US.
    That’s a pretty big ship to sink. With the US reported to have 8000 tonnes in gold reserves, I don’t think that would be enough fire power would it?
    So how do you sink a ship that size?
    One sure fire way would be to devalue the gold.
    Bring it back to $100 USD /ounce.
    To do that, you would need by my estimate 175,000 tonnes to flood the market.
    How much gold do you think the federal reserve and its shareholders have now?

  2. Estelle Mainard
    July 31st, 2015 at 13:16 | #2

    Interesting article. I had no idea that gold had so much value right now. It’s interesting that China and Russia are especially interested in it; why’s that? Anyway, I actually have quite a bit of gold. Do you think I should sell it?

  3. Alex Jennings
    May 28th, 2015 at 08:29 | #3

    With China and Russia exponentially investing in gold, I think it would be wise to jump on the wagon! Hopefully gold’s price will start to rise in the upcoming months. I wonder how much gold the United States has.

    Alex Jennings |

  4. cash for gold jewelry
    February 24th, 2015 at 13:00 | #4

    hopefully the price of gold will go back up.

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