Russia Bought 24 Tons Of Gold In August
This fact is not lost on the budding partnership of Russia and China, who continue to accumulate gold at a feverish pace. Russia continued to add to their reserves in the month of August, in which they added anadditional 21.77 tonnes (~24 U.S. tons) of the yellow metal, bringing their total gold reserves to 49.1 million ounces!
In addition to this, China has also continued to move a portion of their massive fiat reserves into the more tangible form of money, gold bullion. They are continuing to accumulate gold, knowing that they are the most likely successor to the US dollar, and have the highest probability of being crowned with the “reserve currency” status.
When that day will come is anyone’s best guess, but what is no secret is the fact that China is set to rock the precious metals markets in the immediate future. By the end of this month, they are expected to announce an updated estimate of their gold holdings, something that many in the financial world believe is long overdue.
The reasoning for them finally tipping their hand and showing their cards is due to the fact that they are strongly being entertained to become a key member of the highly elite global banking currency, the SDR, and this is one of the stipulations in regards to their acceptance.
The SDR is what some have called the “king” of fiat money and is a powerful currency in global settlements. This is perhaps just one more step for China in their path towards becoming the official reserve currency of the world.
Let us just hope that they are accumulating their vast amounts of precious metals with the vision of one day ushering in a return to the gold standard, or at least some form of it, in which money once again regains some of its former honesty and is truly “as good as gold”.
The SPDR Gold Trust ETF (NYSE:GLD) closed on Friday at $127.65 per share, up $0.08 (+0.06%). Year-to-date, the largest ETF tied to the spot price of gold bullion has risen 25.81%.