Russia buys tons of gold in response to Western sanctions

Russia buys tons of gold in response to Western sanctions

Russia continues buying large quantities of gold. In July, Russia’s Central Bank purchased 9.1 tons of gold. According to Deputy Foreign Minister Sergei Ryabkov, because of new US sanctions, Russia is forced to start developing a system, within which the dollar will not be needed. Pravda.Ru conducted an interview on the subject with Alexei Vyazovsky, analyst, vice-president of the Golden Mint House.

“Deputy Foreign Minister Sergei Ryabkov said that Russia, in response to new US sanctions, is stepping up efforts to reduce dependence on the US dollar. Some believe that Russia, China and India will completely abjure international payments in dollars and euros. The president of Turkey also urged other nations to give up the US dollar and buy gold and lira instead. Forbes analysts write that the Bretton Woods system of finance, which made the dollar the world’s largest currency since 1944, may collapse. Are there any reasons for such fears? Do you think the Kremlin has a major geopolitical strategy at this point?”

“Russia has been buying gold on the basis of two factors. First: the Russian Central Bank does so as an insurance against the possible seizure of its gold and foreign exchange reserves abroad. Sanctions get tighter and tighter, and Russia may find self in Iran’s position, when Western powers arrested Iran’s reserves in treasury bonds. When you buy gold, you keep it quietly on Neglinnaya Street in Moscow, and there is no headache at all. Secondly, Russia buys gold because this is a measure of support for the gold mining industry. The Russian gold mining industry has been on the rise recently, but the state buys two-thirds of gold that Russia makes. Russian gold mining companies have a guaranteed buyer.

“As for your question about whether it is possible to refuse from settlements in dollars and replace them with gold, the answer to that is negative, unfortunately. It is impossible to move gold bars or gold coins depending on fluctuations in foreign trade balances of our partners. Returning the gold standard is impossible because the volumes of world trade are enormous, and one still needs a reserve currency. If it is not the dollar, then it will be something else. The morning sun never lasts a day, and empires tend to collapse. For example, the Russian ruble, the currency of the Russian Empire, used to be the most common currency in the world.”

“Does it mean that all the talk about gold parity and the end of the domination of the US dollar is nothing but a myth?”

“This talk is a waste of breath, yes. Those myths come from the people who are poorly versed in matters of economy. The gold standard was abolished for a reason. The gold standard was unprofitable for world elites, including China and India. The gold standard limits our wealth to the physical presence of the precious metal, the quantity of which cannot increase by more than 2% of the gold that we produce a year. As for dollars, you just print them.

“Plus, there is also a problem of so-called paper gold. “Paper gold” designates futures, options and other derivatives (instruments in virtual form), which seem to be ensured with gold supplies. Usually, however, there is no such guarantee. Only 2-3% of all transactions on the London Stock Exchange or on the Chicago Stock Exchange end with physical supplies of gold. Because of this, speculators – world hedge funds, banks that want to manipulate the price of gold – have an opportunity to build their positions with long and short tooling, regardless of the actual trend in the physical metal market. As a result of this activity, gold may fall sharply, and there are many examples of such manipulations.”

“Does Russia tend to leave China behind on the amount of gold in reserves?”

“Russia tends to diversify its reserves. We do not compete with anyone. There are certain norms that regulate the amount of gold that different countries are allowed to have. Germany, for example, may have 3,000 tons of gold. Russia only has 1,600 tons, and we pale in comparison.

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9 Responses to "Russia buys tons of gold in response to Western sanctions"

  1. Tyndale  August 12, 2017 at 5:28 pm

    Russian Jewish Mafia to play a part in this new currency? New Zio-rubbles to replace Zio-bucks?

    • Poppadop  August 14, 2017 at 2:51 pm

      The Zio-bucks only work because the US is there to enforce the extortion racket. If Russia takes up Zio-rubles how is the Russian military supposed to fight for the racket after criticizing the US doing it for years? The Internet never forgets.

  2. RichBuckley  August 11, 2017 at 7:11 pm

    There would be far higher utility in our dollar if we first nationalize the Federal Reserve. The Current privately owned Federal Reserve is like a ring in the nose of our foreign policy makers.

  3. joetv  August 11, 2017 at 11:36 am

    No one wants to see a collapse of the dollar. So much wealth in all nations are tied to it. I believe what Russia, China, and other nations are doing is hedging by creating a system of payment which excludes the dollar, and circumvents trade tranction fees which the vampires thrive on. These fees are similar to what we experience when traveling and exchanging dollars for lira, etc. But the dollar is an institution and impossible to get around 100%. It will continue to be the majority form of payment for most transactions. But bartering makes complete sense in certain situations, and this option will grow.
    Boliva, and Ecuador are doing the same in South America, keeping out of dollar debt as much as possible.
    To completely eliminate the dollar means war, maybe total war. The risk of assasination increases to an almost a certainty. If you don’t believe this just check out the list national leaders that have been murdered either by a solo event or through revolution, or the more PC correct color of the month revolt.
    So smart leaders will reduce dependence on the dollar while maintaining an acceptable level of use. Kinda of like water conservation. I can’t be shut it off completely, but I can shower every second or third or fourth day.

  4. Gary Kraut  August 11, 2017 at 10:55 am

    Steve Worrell and Diesel = spot on.

  5. Diesel Chadron  August 11, 2017 at 9:26 am

    Mr Worrell is spot on. The USD reserve status is the worst thing for the world right now and everyone besides Americans know it. Take away the dollar’s reserve status and immediately all of American military bases would have to close. All of the sickos committing crimes against humanity every morning for breakfast would be prosecuted. Corporate America would disappear. Military industrial complex would disappear.

    Giving a tiny group of people the ability to create money from thin air is the stupidest American blunder of the 20th century and is also the source of all the world’s ills. Gold is the only real money and thank God China and Russia appear to be bringing back the gold standard.

    • Poppadop  August 11, 2017 at 7:19 pm

      “Gold can indeed be a part of this system – to settle international payments imbalances, not to back domestic currency. It became clear by the 1960s that no country can participate in a gold exchange standard and wage war.”
      ~ Economist Micheal Hudson, 2014

      And of course, opposing the bankster cartel is already requiring waging war… Remember: Money is just units of exchange to facilitate trade. It’s just numbers, so your claim that “gold is the only real money” makes no sense.

      What’s important is who controls the money’s quantity, and the banksters have historically had that advantage with gold. If Russia or anyone else is stupid enough to tie their trade exclusively to gold, what do you think the banksters will do with all the gold they stole from the World Trade Center, Libya, Ukraine, etc.?

    • Diesel Chadron  August 11, 2017 at 8:03 pm

      money absolutely must serve two specific functions. one is to be a unit of account (you call this “just numbers”). the other is to be a vehicle of savings. gold is more than adequate to serve in both capacities. the fractional reserve confetti that we have now does fine as a unit of account but rotten as a vehicle for saving.

      part of your last paragraph is patently false. in fact, bankers have zero control over the supply of gold. gold miners exclusively determine adjustments to the supply of gold.

      at present, Saudi Arabia, UAE, and Kuwait sell oil for dollars. Iran does not. Syria will not. Yemen probably will not for much longer. Russia (the biggest supply on earth) does not. Iraq is up in the air – but will probably stop selling in dollars, if it’s safe. US is trying to install a puppet in Venezuela to have that oil sold in dollars. Without oil transactions, the dollar is worth a 2.6×6.14 sheet of paper/lenin.

      if China and Russia are “stupid enough” to back their currency in gold, the currency will be worth all the oil in Russia, all the gold in the vault and all the sh*t on alibaba. it could spell major trouble for the USD.

      also, the US has no gold. just ask Germany.

    • Poppadop  August 12, 2017 at 10:24 pm

      “gold is more than adequate to serve in both capacities”

      You know, until you realize that there is nowhere near enough gold to service the entire world’s trade in this fashion, and massively inflating the price when the metal has useful industrial applications makes no sense. It doesn’t matter whether one plans to exchange money in the short-term or save it to exchange in the long-term: The real value is in the useful goods and services the money is exchanged for, not the money itself.

      “the fractional reserve confetti that we have now does fine as a unit of account…

      Given how the banksters manufacture periodic economic downturns, debt-based money is bad at both short- and long-term trade. Of course, the cartel managed to do this even with gold-standards, so…

      “bankers have zero control over the supply of gold.”

      Gold the banksters have stolen can manipulate the supply just like freshly mined gold can. If it is being horded, it is not being traded; hence, it is not in the money supply. And that’s not even factoring in bankster-controlled gold mines…

      “also, the US has no gold. just ask Germany.”

      The US has something better than gold: It has “high–class muscle [men] for Big Business, for Wall Street and for the bankers,” as Major General Butler put it. Just ask Germany.

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