Posted on 12/20/2014 7:53:44 AM PST by dennisw
Russia Busts "Gold-Selling" Rumors, Reports It Bought Another 600,000 Ounces Taking Gold Holdings To New Record High
Yesterday, when we reported the latest rumor of Russian gold selling, this time out of SocGen, we said that "it should be noted that SocGen and its "sources" have a conflict: in an indirect way, none other than SocGen is suddenly very interested in Russia stabilizing its economy because as we wrote before, "Russia Contagion Spreads To European Banks : French SocGen, Austrian Raiffeisen Plummet" which also sent SocGen's default risk higher in recent days. So if all it will take to stabilize the RUB sell off, reduce fears of Russian contagion, and halt the sell-off of SocGen stocks is a "source" reporting what may or may not be the case, so be it."
Moments ago, as if to deter further speculation that Russia is indeed converting hard money earned from real resources for fiat paper, the Russian monetary authority made it quite clear, that at least in November, Russia not only did not sell any gold, but in fact bought another 600K ounces in the month of November.
This Zero Hedge article was posted on their website at 9:40 a.m. EST yesterday morning---and I thank Manitoba reader U.M. for her final contribution to today's column.
(Excerpt) Read more at caseyresearch.com ...
We are certainly living in interesting times.
After Russia second biggest gold buyer is China.
Exactly. Gold is just a yellow metal, which is no more “real money” than printed cash. On the off-chance that financial system totally collapse, one could stock up... Swiss watches, amber jewelry or any other items that are relatively small and don't lose value over time.
BTW Zero Hedge is pretty much a conspiracy website full of anti-American and pro-Putin bias.
Nations are made of people.
People value gold more than they trust their governments.
True, but not my point. I understand why individual would stockpile gold. My question is why, at this time, would a nation stockpile gold when there are a lot of things they can do to improve the life of their citizens?
The motivation of the leaders of a nation and the motivation of an individual of that nation are not always the same thing.
I don’t think the Russians are buying gold with rubles, but American dollars. A currency they need for all their imports. Any dollars used for gold will be less for items such as food.
I don’t know the answer, I was just asking the question.
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