The Global Gold Picture!

Want to see something really bullish?

With this post, we hope to show you how seriously the rest of the world takes gold in this new era of de-dollarization.

The following bullet points are taken from an article by Sergei Glazyev, Commissioner for Integration and Macroeconomics within the Eurasian Economic Commission and a close Putin advisor, which appeared in Vedomosti, the Moscow business paper in December 2022.  

Our thanks to Alasdair Macleod for providing this translation on his Substack page.  Macleod stresses the importance of these remarks given the US sanctions and asset grabs and Russia’s presidency this year of the BRIC nations and as background for the major BRICs meeting coming up in October.

• The sanctions imposed against Russia boomeranged on the Western economy. The geopolitical instability they provoked, rising prices for energy and other resources, inflation, and other negative factors put strong pressure on the global economy, in particular the global financial market.

• Large gold reserves allow Russia to pursue a sovereign financial policy and minimize dependence on external lenders. The amount of reserves affects the country’s reputation, its credit rating and investment attractiveness…. In 1998, the lack of sufficient international reserves became one of the causes of the crisis, which ended in default for Russia. Now our country already has large gold and foreign exchange reserves, being fifth in the world (after China, Japan, Switzerland and India) and ahead of the United States. But this is not enough.

• Over the past quarter century, gold has been flowing from West to East through the main hubs (London, Switzerland, Turkey, the United Arab Emirates, and others) with a capacity of 2000 – 3000 tons per year. Did the western Central Banks’ official gold reserves remain in their storage facilities? Or has it all gone through swaps and leasing? The West will never say, and Fort Knox’s audit will not.

• Over the past 20 years, gold mining in Russia has almost doubled, while in the United States has almost decreased by half. By dismantling real wealth, the United States has lost its competence and interest in the production and processing of strategic resources (gold and uranium, etc.). The printing press funds the purchase of everything they want.

The world financial order has tolerated the printing press dollar since the end of World War II.  But the post-war order is coming to an end and the pace of de-dollarization will accelerate dramatically.  The dollar will eventually end up the “Old Maid.”  No one will want to be holding it when the game ends.  Prepare your own future accordingly.