Why Russia And China Are Buying Gold, According To An Economics Professor

To Joshua Aizenman, a professor of economics and international relations at the University of Southern California, dabbling in gold is mainly an attempt by bankers and officials to send a message to the world — one that signals an appetite for power or that broadcasts a desire to challenge a rival. “I doubt that the Chinese or the Russians actually believe that gold is such a great investment in terms of pure returns,” Professor Aizenman said. “But if they’re trying to suggest that they’re unhappy with the dollar or that they want to become a global player, then gold is very powerful.

“The investment is a symbol,” he explained. “It’s made for political, not financial, gain.”

Why Russia And China Are Buying Gold, According To An Economics Professor