Sanctions and the ‘Gold Ruble’: Russia’s Gambit For Full Financial Sovereignty
By GCRU Gold News on Monday, February 20 2017, 23:51 - Permalink
Here's where the "gold ruble" comes into play.
For us, the "gold ruble" is just a useful euphemism for a much larger concept: Russia is focusing on giving its currency real value that will be recognized throughout Eurasia (and perhaps the rest of the world).
This seems to be a common strategy shared among most BRICS nations. Emerging economies understand that if they want to free themselves of the "dollar yoke", they must create confidence in their own currencies.
In this context, Russia and China's gold-buying sprees make sense:
As they sharply increase their gold reserves, China and Russia are selling off their U.S. Treasuries, with their hunger for the metal coming amid a strict diet excluding dollars. Gold is appealing to these countries because it shields them from the U.S. government's ability to control the value of their holdings. Gold is a country-less currency. A continuing trend of reserve buildup and Treasury sales might weaken the dollar and pressure gold prices higher.
China and Russia have officially added almost 50 million ounces of gold to their central banks while selling off more than $267 billion of Treasuries.