Russia’s Central Bank Purchases 600,000 Troy Ounces of Gold in November

caseyresearch ^ | Dec 19 | Ed Steer

[CIB-173RDABN]

We are certainly living in interesting times.

[Cossak]

Russia is planning to use in trade alternative currencies. Agreement is with China to use yuan and ruble. As I heard gold is under-appreciated while dollars over-appreciated. Russia tries to get rid of dollars an US state obligations

[Cossak]

After Russia second biggest gold buyer is China.

[Grzegorz 246]

“What value is gold? Outside of industrial use the only value in gold is what someone is willing to pay or trade for it.”

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.

[null and void]

The question is why does a nation need to stockpile gold?

Nations are made of people.

People value gold more than they trust their governments.

[CIB-173RDABN]

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.