2014-09-02

Russia's Secret Hunt For Gold to Avoid China's Mistakes

Several days ago Die Welt published a story on Russia's secret hunt for gold, so as to reduce the risk from being excluded from the Western financial system. Below is a part from that article, Google Translated.
Russlands heimliche Jagd nach Gold
With the gold Russia remain just in case liquid and can therefore urgently needed goods bought from friendly countries. "Gold reserves act in a crisis as an internationally recognized currency that can be exchanged for foreign currency at any time or food," says Daniels.

Mid-August, announced Russia's President Vladimir Putin, will no longer settle Russian oil and gas exports in dollars, but in the local currency rubles. The supremacy of the dollar threatens the Russian economy , Putin said.

Lux also recognizes in this context a political thrust: the incentive of Moscow to obtain supplies under the current sign with papers on dollar and euro terms, he calls limited. "The Western sanctions Moscow has no reason to be money to invest in financial instruments of the Western powers", says the money manager. Russia try with the gold, freizuschwimmen something from European and American influence.

The Chinese media picked up the story and focused on comments saying Russia will not repeat China's mistake of owning too many dollars and trapping itself in the Western financial system.



德报:俄罗斯秘密囤积黄金 避免重蹈中国覆辙 (German newspaper: Russian secret hoard of gold to avoid repeating the mistakes of China)
Reference News Network on August 30 reported that Germany's "World News" website on August 28, entitled "Russian secret buying gold," the article, the main contents are as follows:

Russia's central bank since the beginning of 2014 a total purchase of 70 tons of gold. If in peacetime, it will only be a footnote economic news. But in the increasingly tense geopolitical situation in the occasion, which sparked concern. There is no other country like Russia targeted to increase gold reserves.

Many observers speculated hidden behind a secret plan, such as a possible outbreak of the financial war with the West to prepare. Some people even believe that the world's largest land area of ​​the country ready to overthrow the dollar's status as the major currencies. Directors of an investment company in Hamburg Alexander Daniels said: "If Ukraine further intensify the conflict, and even the evolution of the war, then by the US-led Western sanctions may severely restrict or even prevent the payment transactions in Russia." In short, the move is indeed a Moscow Life doubt.

Different from traditional industrial countries, rapid economic growth in emerging industrial countries has been increasing over the years precious metal reserves. Most countries in order to make plenty of reserve diversification: the national wealth should not composed entirely of the euro and the dollar. The financial crisis has shown that there are a lot of problems the euro and the dollar.

But look at the figures, we know that different emphases in Moscow, despite the decline in foreign exchange reserves, but Russia has substantially increased the gold reserves in 2014. Ukraine crisis because, once Russia's foreign exchange reserves fell to $ 423 billion. This is the lowest value since the spring of 2010.

Russia's dollar reserves and euro reserves has shrunk dramatically in 2014 of the occasion, Moscow has been the purchase of gold. In June, mid-July, the Russian central bank's gold reserves increased by 10%.

Most gold speculators think very shrewd move to Moscow, but for what purpose the Russian mixed views. Some people think that this is purely for economic purposes, but there are claims that this is the show based on the financial strength and geopolitical considerations.

Directors of an investment company's Munich Mark - Oliver Lux said: "Russia do purely rational, just to avoid China to commit mistakes, that deeper and deeper into debt to the United States among financial dependence." The Investment Experts alluding to the Chinese people's huge foreign exchange reserves - currently $ 4 trillion - mostly invested in Treasurys. If the depreciation of the dollar, Beijing would have to consider the book to be facing serious losses, which will be counterproductive in the Chinese economy.

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