Everyone Is Hoarding Gold

By Tom Lewis

The tiny nation of Kyrgyzstan has big plans. Caught between its giant trading partners, China and Russia, Kyrgyzstan is stockpiling gold. It wants to increase gold from 16 percent to 50 percent as part of its international reserve.

Tolkunbek Abdygulov of the Kyrgyz Central Bank has stated that any currency, whether dollars, rubles, or yuan, has become too vulnerable. The small mountain nation, with a population of 6 million, relies heavily on Russian and Chinese imports. With the possibility of global trades war on the horizon, Kyrgyzstan prefers to protect its financial stability by amassing gold. It suffered during the ruble devaluation in 2015, and it is turning to gold as a hedge against any renewed economic upheaval.

Kyrgyzstan is merely following in the steps of other, larger nations, such as Russian, India, and Turkey, who are also increasing their gold reserves. The U.S. and Germany both have reserves that are 70 percent of its central bank holdings. If there is a trade war, countries are prepared.

Gold has traded steadily and unspectacularly for the past decade, but looming tariffs and trade sanctions have pushed gold out of the doldrums and into the stoplight.

Kyrgyzstan, one of the few post-Soviet republics with its currency, has been buying gold since 2014. Abdygulov has kept the nation’s currency, the som, relatively steady and recognizes that stockpiling gold will serve as a hedge against inflation.

Kyrgyzstan is smart to worry. Following President Trump’s promise to institute tariffs on imports, Russian has sold off half of its U.S. Treasury bonds, more than $47 billion, in retaliation. At the same time, Russia’s central bank has increased its gold reserves to 62 million ounces, at a value of $80.5 billion, in an effort to diversify its reserves in view of possible geopolitical unrest. Russian is less interested in increasing return on its investments. The U.S. bonds yield a higher return than gold in 2018, but selling off the Treasury bonds lessens Russia’s dependency on the U.S. dollar. Russian’s hoarding of gold has long been viewed as an attempt to devalue the U.S. dollar as the reigning global currency.

China is another country that would like to see the U.S. dollar replaced on the global financial market. If China were to sell off its $1.18 in U.S. Treasury bonds, it could go a long way in accomplishing that goal.

Russia’s increase in gold holdings has made it a global gold powerhouse. It has triple the gold as a percent of GDP, or 5.6 percent of the world’s available precious metal.

This is a thought-out, long-term plan for Russia, and U.S. trade sanctions are only a part of the picture. With large gold reserves and a relatively small international debt, Russia has positioned itself as a strong global financial force. It not only wants to strengthen its own currency, the ruble, but it is preparing itself for the collapse of the U.S. dollar. The future won’t be the dollar vs. the ruble. It may very well be East against West, and East is in an extremely favorable battle position.

This article (Everyone Is Hoarding Gold) was originally published on Gold Telegraph and syndicated by The Event Chronicle. Via Zero Hedge.


Zimbabwe To Have Its Own Stable Currency Backed By Gold
Ron Paul: The World Is Once Again Considering The Official Use of Gold In The Monetary System
Lynette Zang: Central Banks Are Using Their Time Before The Reset To Accumulate Gold
Gold Rises 300% In Three Months Against The Rial As Iran Enters Full-Blown Fiat Currency Crisis
The End Of Dollar Dominance Means The Empowerment Of Those Nations That Own Gold
Russia And China Are Stockpiling Gold
Dr. Judy Shelton Calls on Trump to promote monetary system reform “linked in some way to gold”
At The Current Debt Level, The Reset Would Push Gold To $10,000 An Ounce
Gold Leaving US Vaults: Signs Of Upcoming Currency War And Armed Conflict
China and Hong Kong Make The Case For Gold Alongside the OBOR
Five ‘Dry Runs’ Successfully Completed As China Prepares To Launch Its Gold Convertible Petro-Yuan
Idaho House Votes Overwhelmingly to Remove Income Taxation from Gold and Silver
Alabama Committee Passes Bill to Help Encourage Use of Gold and Silver as Money
Paper Gold Trading Days for London & New York Numbered
Over 11,000 Gold Contracts Were Transferred To London IN ONE DAY
Russia-China real gold standard means end of US dollar dominance
China claims gold reserves at end of 2016 a massive 12,100 tonnes
Challenging the Dollar: China and Russia’s Plan from Petroyuan to Gold
Germany has repatriated all of its gold kept in Paris and a third of its reserves in the US
China Readies Yuan-Priced Crude Oil Benchmark Backed By Gold
Gold reserves to back Zimbabwe currency
Petrodollar Faces Growing Threat with Payments in Gold Across Asia

The Event Chronicle

The Event Chronicle is a daily alternative news blog for people interested in seeking truth and exploring alternate view points not covered in the mainstream.

Daily Updates


Popular This Week

Fight Fluoride


Above Majestic Trailer

Watch Full Movie Now!