Russia and China buy tons of gold getting ready for dollar collapse

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Russia and China buy tons of gold getting ready for dollar collapse - PravdaReport

17.05.2016

Russia and China buy gold to get rid of the weakening dollar. The weakening of the US dollar will become even more noticeable. Increasing their gold reserves, Moscow and Beijing make their economies stronger, the Spanish newspaper El Pais wrote.

According to the publication, central banks of Russia and China have been buying a lot of gold recently. During the past 15 months China has increased its gold reserves by 70% to 1,700 tons, becoming the world's sixth country with largest reserves of gold. Russia's gold reserves have grown by 21 percent to 1,460 tons.

During the crisis, the price of gold grows, El Pais says. Demand for gold remains stable. From 2009 to 2015, China was buying 6-8 tons of gold a month, but in the summer of 2015, the country doubled its appetite for the precious metal.

Russia started buying gold in 2015, increasing purchases against the backdrop of falling oil prices.

Countries buy gold in order to weaken their dependence on the dollar, Professor Carlos Fernandez at the Institute of Stock Research believes. According to him, China and Russia have debts in dollars, so the countries want to feel more secure by buying gold.

Pravda.Ru has reported before that Bank of Russia took the lead in becoming the world's largest buyer of gold. Russia's gold and currency reserves have grown by $3 billion to $368 billion

"This is a quiet attack on the almighty dollar. Russian President Putin buys a lot of gold without attracting much attention to it. As long as political circles fear a new cold war between Moscow and the West, this war has already erupted in the financial sector," Germany's Die Welt wrote.

According to German economists, Putin is trying to undermine the power of the United State and Europe. Those who buy gold stand in the way for Western currencies in their global domination. This is a part of Putin's plan for world domination, economists say.

Noteworthy, Want China Times reported with reference to Duowei News that China's enormous gold reserves may crush the US currency." The publications also said that Russia had doubled its gold reserves since 2005.

Pravda.Ru

 

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[releventchair]

China consumes a lot of oil.
Russia produces a lot of oil.
They can easily work out a gold trade note system among themselves.
Will others join?
A question of when if regarding those who would step out of the currently accepted petro dollar.

Petrogold: Are Russia And China Hoarding Gold Because They Plan To Kill The Petrodollar? » Alex Jones' Infowars: There's a war on for your mind!

Here is an old article mentioning among many things ,a pipeline.

Bear in mind what options Russia has during winter for a tolerable welcoming climate.
Granted there were multiple reasons to "annex" Crimea ...but consider it's being a temperate port alone as one.

 

[jim4silver]

Those articles remind me of the crap posted on the big PM bull sites that always feature the same "expert" prognosticators that seem to be wrong almost all the time (I say almost because maybe they get a call right now and again, although I am not aware of them). I like reading the foreign articles though because they do cover from slightly different "angles" than the US authors.

I have found it is easier to see possible future market moves in PM's once I removed my "blinders" and stopped believing stories that matched my own internal bias. I now read the PM bull articles for fun and entertainment and do the opposite of what they say.

Even some of the more slightly respected writers will take one or two proven facts and extrapolate the hell out of them to get to ridiculous conclusions like "silver will be $1000 soon", etc.

One thing I did was start following the "experts" that the pro PM sites always derided. For years I thought Dennis Gartman was a stooge because that is what a few of the big PM sites always said about him. When I followed Gartman on gold closely, he was right for the most part the entire time. Yes he gives "trader" advice so he may be bullish one week and bearish a few weeks later, but that is how the markets often move.

When the time comes that PM's do soar (and that time will come), it won't be predicted by any of the guys online selling subscriptions or PM's on their blog. It will happen and take most if not all by surprise (as to when it actually happens). Maybe after we re-visit the $13s in silver and near $1000 in gold (maybe a hair below that)?

PS If gold was really going to be part of a new world controlling currency, the US gov would be stockpiling it as well but it seems they don't give a rat's a$$ about gold.

Just my opinion.

Jim

 

[bradley1719]

China and Russia are buying gold simply because it is cheap. That's all there is to it. The cheaper it gets, the more they buy. They arent stupid.

But the tin foil hat wearing PM bulls who are desperate to have their failing world view validated will lap up stories like this one like cream.

Think about it... China can't afford for the US dollar to collapse. They own way too many US treasuries.

Gold will never EVER be used to back a currency ever again. We have learned our lesson. It just can't work. Every attempt to use PM'S to back a currency throughout history have failed. Every... single... time...

And there are good logical reasons why this always happens.

 

[Oddjob]

The weakening US Dollar; I love those words. my Military retirement check is in USD and I live in Euro land. So I keep a close eye on the USD; but also I am into FOREX as well and have a perfect pattern every month on USD trading that makes me a good deal of money, more than most make in a month.

So if that is their strategy, the I say go for it, make us all happy, we will keep providing the gold for the market. Mean while their money will still be worth total crap and not even come close to comparing with ours for many years to come if ever. China stock runs as our does, ours goes up and theirs does to, they are a day in front of us but their stock goes up after ours does.

Who is leading who.

They should try investing in lots more gold and as back up, some USD. How many nations around the world use their money as their official/unofficial currency and how many use USD. Oh, thats right we have that on lock down too.

Seems like an economic joke being played on those two nations, they may think they are getting in front but it is nothing more than planted intel to people who will defect from those nations to the US when they see who is really holding the ball. Well they will defect or be killed in their own country, either way it will not bother the USD.