Is Russia moving to replace the dollar as the word’s reserve currency with a gold backed ruble? Sometimes the truth is stranger than fiction because it looks like, if they have their way, Russia is on a track that may make their gold backed currency the next world’s reserve currency. The only thing standing in their way is China and they have already made agreements with China which will at least let them partner in the world’s new reserve currency if their plan for sole domination of it doe not come to fruition.
Both Russia and China realize that the U.S. Dollar’s days as the world’s reserve currency are numbered and they are taking steps to replace it with their own currencies. Their policies are designed to bolster their role in the world’s pecking order of power and influence and to keep the value of their gold holdings on the rise. They are simply waiting for the dollar to stop defying gravity and proceed into the ashcan of failed fiat currencies. While they are waiting they are doing everything that they can to build up their stockpiles of gold so that they can step to the fore when the dollar stumbles, which is looking more likely everyday in spite of the U.S. Government’s attempts to alter the perception of the dollar’s value with their propaganda and lies!
This posting by RJ Wilcox, of Kitco Commentary, is a must read for anyone interested in the direction of the price of gold and all of those that sense that nothing good will come out of the massive debt that is being racked up in our name by “The Community Organizer In Chief” and his Socialist Party comrades.
From Russia With Gold – Gold Miners Weekly
Friday November 01, 2013 15:38
…In his excellent book, Currency Wars, Jim Rickards retells the story of Pentagon sponsored economic war games, in which he was invited to participate a few years ago.
In order to give them (the Pentagon) their money’s worth Jim and his teammates decided to coordinate a scenario where Russia, who is tired of the U.S.’s dominant currency position, would move its gold to Switzerland, start a new bank in London, and issue a new form of currency that was backed by gold.
Initially Russia would own all of the new currency but others would be able to deposit gold and receive the currency. However, the key feature was that any Russian exports of oil or natural gas would have to be paid for in the new currency.
The eventual take away from the war game was that a potential disruption to the dollar’s hegemony is possible.
Putin is on record saying, at the World Economic Forum in 2009, that “the one reserve currency has become a danger to the world economy: that is now obvious to everybody.” Putin believes that the world should have multiple dominant currencies and Russia’s aggressive activity in the gold sector supports his sentiment…
Be sure to read the whole story here. You will learn a lot about Russia’s gold production and at the end of the article you will see an impressive chart that rates gold miners so it will be easier when you want to leverage your money with the right gold producers.
Sometimes What Is Not In The Market Has A Greater Affect Than What Is!
The fact that both Russia and China are withholding their gold production from entering the market is having a direct impact on the direction of the price of gold. Keeping their production out of the market enables them to add more to their stockpiles, which in time will allow them to back their currencies with gold, push the U.S. Dollar out of its role as the world’s reserve currency and help keep the price of gold on a rising trajectory.
Russia: The sleeping giant of gold producing countries
May 24, 2013 Michael J. Kosares
As it stands today, the top seven global gold producers, according to the U.S. Geological Survey, are:
1. China (370 Metric Tonnes)
2. Australia (250 MT)
3. United States (230 MT)
4. Russia (205 MT)
5. South Africa (170 MT)
6. Peru (165 MT)
7. Canada (102 MT)
When you take-in this table, it inspires little beyond a shrug until you consider the monetary policies, and the policies toward gold, in the countries listed. China, for example, is the world’s biggest producer of gold, but its production is essentially sequestered, i.e., it stays in the country and forms part of its monetary reserves. The same is true with Russia. Thus 21% (575 tonnes) of the world’s gold production in 2012 did not see the light of day on international markets.
In addition among the countries that still make their gold production available to world markets, four of the top seven are in long-term decline — the United States, South Africa, Australia and Canada, some would say precipitously. Three enjoy rising production — China, Russia and Peru. Among the declining states, South Africa suffered the worst cutbacks, down 52% from production in 2000. U.S. production is down 39% over the same period; Canada is down 38% and Australia, 24%.
Read more at USAGOLD.
A New Day Is Coming For The World’s Reserve Currency
At least you can say that we live in interesting times! There is a change coming soon to the world’s reserve currency and one thing is certain, it will either be the Russian Ruble, the Chinese Renminbi, or if neither one takes the lead, a combination of the two. The one thing that is for sure, the U.S. Dollar’s dominance of the reserve currency business is about to end. As that day gets closer, you will see a complete revaluation of the price of gold as it replaces the fiat currencies that have been the front runners in participating in the currency explosion that has been known as “quantitative easing”.
Till next time, good luck and good trading!