09.11.2022, 15:14
The Countries of the World are increasing Gold Reserves due to the currency Dominance of the United States
Source: OREANDA-NEWS
OREANDA-NEWS The US currency dominance and Washington's tough measures to preserve it are forcing a number of countries, including Russia and China, to build up gold reserves comparable to preparing for a "zombie apocalypse," this opinion was expressed by Bloomberg columnist David Fickling.
According to the World Gold Council, the central banks of the countries of the world bought 400 metric tons of gold in September, which is comparable to the usual purchases for the whole year, the author noted. According to him, this is similar to the behavior of people before the "zombie apocalypse". "Fill the bunker with canned food, firearms and get more ingots," Fickling said.This train of thought is associated with the so—called "gold bugs", supporters of the gold standard, and it is not so far from what is happening in the precious metals markets - and the parade is "commanded by whole countries," he explained.
"Bullion has one important advantage: unlike bonds, they do not bind you to an unreliable counterparty," the author recalled. Thus, the US national debt was once considered a "truly risk-free" investment, but sanctions have frozen the reserves of the Bank of Russia, and the EU is considering transferring these funds to Ukraine. "In a world where you can't trust anyone, it makes sense to lay a golden straw for yourself," the columnist stressed.
In this regard, according to him, the Turkish and Egyptian purchases of gold are indicative, especially given that both countries are allies of the United States. Over the past decade, their relations with Washington have deteriorated significantly, the further development of international relations is "more controversial than ever", and in such a situation it is logical not to link the reserves of the central bank with a single country.
According to the World Gold Council, the central banks of the countries of the world bought 400 metric tons of gold in September, which is comparable to the usual purchases for the whole year, the author noted. According to him, this is similar to the behavior of people before the "zombie apocalypse". "Fill the bunker with canned food, firearms and get more ingots," Fickling said.This train of thought is associated with the so—called "gold bugs", supporters of the gold standard, and it is not so far from what is happening in the precious metals markets - and the parade is "commanded by whole countries," he explained.
"Bullion has one important advantage: unlike bonds, they do not bind you to an unreliable counterparty," the author recalled. Thus, the US national debt was once considered a "truly risk-free" investment, but sanctions have frozen the reserves of the Bank of Russia, and the EU is considering transferring these funds to Ukraine. "In a world where you can't trust anyone, it makes sense to lay a golden straw for yourself," the columnist stressed.
In this regard, according to him, the Turkish and Egyptian purchases of gold are indicative, especially given that both countries are allies of the United States. Over the past decade, their relations with Washington have deteriorated significantly, the further development of international relations is "more controversial than ever", and in such a situation it is logical not to link the reserves of the central bank with a single country.
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