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Russia Continues to Accumulate Gold, While China Prepares for a Major Announcement - Nathan McDonald

Russia Continues to Accumulate Gold, While China Prepares for a Major Announcement - Nathan McDonald
By Nathan McDonald 4 years ago 20677 Views 3 comments

September 23, 2016

In the face of everything that is going on during this insane election cycle, it is easy to forget that there are forces operating behind the scenes, regardless of what the news cycle is reporting on.


The elections, which are to showcase the first debate on Monday between Donald Trump and Hillary Clinton and is speculated to be the most-watched election event in U.S. history, is important and captivating indeed, but still, the world continues on, no matter what the results of that night bring.


Two such countries that are not waiting to see who the next President is are Russia and China, both of which are continuing to prepare themselves for the day when the U.S. dollar is supplanted and no longer the reserve currency of the world. This day, as many of our readers are well aware of, is inevitable.


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 an additional 21.77 tonnes 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".




Nathan McDonald is a libertarian, entrepreneur and precious metals enthusiast. He has always taken a keen interest in free markets and economics since an early age, which naturally led him to become a true believer in precious metals and all that they stand for.

Nathan served eight years in the Royal Canadian Navy as an electronics technician, seeing the true state of the world, before starting his first successful business. He has since gone on to create a number of businesses, all of which are still in operation and growing.

In addition to this, Nathan runs a network of successful precious metals blogs, and a growing newsletter that has attracted readers from all around the world.

He is a regular and highlighted writer for the highly respected Sprott Money Blog, which covers world events, geopolitics and of course precious metals.


The views and opinions expressed in this material are those of the author as of the publication date, are subject to change and may not necessarily reflect the opinions of Sprott Money Ltd. Sprott Money does not guarantee the accuracy, completeness, timeliness and reliability of the information or any results from its use.


Bill Taylor 4 years ago at 2:21 AM
China does not want reserve currancy status and the problems that come with it. The basket of currencies will do just fine.
irvm 4 years ago at 9:55 AM
who authorizes the basket and who believes in it?
Carl 4 years ago at 1:26 PM
I think that it's wise to stock up on gold right now as well. If this election has taught us anything, is that we don't know what's coming next. With two leading countries accumulating gold, I think it wise to follow suit!

Carl

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