Russia & China Use Logic When it Comes to Gold

Sprott Money's picture


Russia & China Use Logic When it Comes to Gold

Posted with permission and written by Rory Hall, The Daily Coin



Russia & China Use Logic When it Comes to Gold - Rory Hall


As we reported both here and here, gold is the answer going forward. How we the people will access physical gold or if we will be able to access physical gold is really the only remaining question. How high gold is going is the other important question. I hope it doesn’t get into the lofty heights that have been suggested in recent years - highs like $7,000, $9,000 and even $10,000 an ounce, as it would be much harder for people to use in everyday transactions. Unless, of course, it was on the blockchain or some other yet-to-be-developed type of fintech.


It is also no secret that Russia is looking for the exit door where the Federal Reserve Note (FRN), world reserve currency, US dollar is concerned. Russia has made it very clear they are making all the moves to stop using the FRN/US dollar as their primary currency to settle international trade. Gold will probably handle Russia’s trade settlement just fine.


Gold Is Russian Answer To U.S. Dollar Dominance – CPM Group

Russia’s increased purchases of gold is not a red flag, but a clear message of diversification away from the U.S. dollar and its “monetary hegemony,” according to Jeff Christian, the CPM Group managing director.

In October, Russia added another 21 metric tons of gold, which tripled the amount over the last decade and brought the overall total to 1,800 tons.

Russia has added, approximately 18 tons per month, every month, for the past 3 years. At their current pace Russia will move ahead of China into sixth largest gold hoard by late Q1 2018.


But, it’s “business as usual for Russia,” Christian told Kitco News at the Silver & Gold Summit in San Francisco. “[Russia is] finally able to execute on a long-term desire to rebuild their [gold] inventories and to diversify away from the dollar.”

Russia has witnessed most of its gold reserves sold off after the breakup of the Soviet Union, which it has been attempting to regain since about 1997, Christian pointed out.

“In 1997 to 2005 [Russia] didn’t have the foreign exchange and capital inflows needed to convert money to gold. But, as the oil, palladium, and nickel prices started rising in 2005, all of a sudden, Russia’s economy had a massive inflow of U.S. dollars.”

But, the Russian government quickly realized that it had a problem relying on the U.S. currency, said Christian.

“Russia had a massive inflow of U.S. dollars at a time when the U.S. government was increasingly hostile toward the Russian government,” he noted, adding that Russia decided to diversify away from the American currency.

Christian added that Russia is not alone in sending this kind of message of diversification, highlighting that China as well as many other countries are on the same page.

“China in Q1 2009 bought a lot of gold that was supposed to go to China Investment Corp, the sovereign wealth fund. And instead, the government decided to add it to monetary reserves to send a message to the U.S. Treasury that China can in fact diversify monetary reserves,” he said.

Change is in the air, according to Christian: “There is a great dissatisfaction with the monetary hegemony that the U.S. has exercised since WWII and [the world] will move towards some sort of post-Bretton Wood floating exchange rate program at some point in the future.”

You know there is a serious alliance between Russia and China when even Jeffrey Christian can’t discuss one without mentioning the other. These two countries are working hand-in-glove to displace the FRN from its world reserve currency status and move into a system that includes gold at the foundation. Neither country wishes to upset the warmongers in Washington DC as these two countries understand they are dealing with an unstable group who haven’t honored one treaty they have ever signed – not one treaty in all the history of Washington DC has ever been honored. Russia and China are just going about their business of conducting business and when all the major competent pieces are in place it will be too late for the US/Uk to retaliate.



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Russia & China Use Logic When it Comes to Gold

Posted with permission and written by Rory Hall, The Daily Coin



Check out these other articles by our contributors:

Dave Kranzler -  Bitcoin’s Inconvenient Truths: The Silence Is Deafening

Craig Hemke - Banks Again Defending Silver's 200-Day Moving Average

Ask The Expert: Jim Willie

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francis scott falseflag's picture
"Russia Plans First-Ever Sale Of Yuan Bonds"


Russia and China aren't just using logic when it comes to gold.  They're using logic everywhere. 

you_are_cleared_hot's picture

So, I for one love this. I am a supporter of Gold. For thousands of years we have valued gold above all else. Nothing has changed.

ZH Snob's picture

I value the Holy spirit more than anything else in existance.

JibjeResearch's picture

Fuck you and come and get some lead... baitchezz...

BandGap's picture

Why are any of us looking to anyone making predictions? Seriously, this is all bullshit. No one knows what the hell is going to happen. And the experts drone on and on. I do like the commentators that link world events to PM price and fluctuation, among other things. The Silver Report comes to mind.

Thing is, gold and silver are being bought and stored, the price is being suppressed. Agreed?

This means one thing to me and I will act on this for my own needs. As far as when, I don't worry about that shit.

Bring the Gold's picture

There will be a global cryptocurrency backed in gold and silver and that is the way forward. All the fiat currency cryptocurrencies are mere money smuggling conduits and speculative vehicles. Sadly they also use INSANE amounts of electricity.

When, not IF, the new global cryptocurrency some SDR like basket backed by sovereign currencies including Gold comes out BitCoin people will be offered a chance to embrace the new system by exchanging their bitcoins for the Phoenix/SDR/Bancor and they of course will and that is the entire Raison D'etre of Bitcoin. It's always been a trial balloon for mass acceptance of purely digital currency and a way of wooing a significant section of techno people (one of the most important cultural creative groups of the past thirty years) on board with digital totalitariansim. Bitcoin is close to having done its job.

I assure you, when it comes to it the central banks will value gold correctly (VASTLY higher) because they own most of it. Currencies including crypto will be bashed to bargain basement levels (crypto will be worth more than dollars, but its ratio to ounce of gold will invert and then some) so once again the Banksters will buy what's left of the world's assets they don't already own for pennies as well as putting their final control matrix in to place. Why do you think they have tolerated Crypto for so long? Because they made it.

JibjeResearch's picture

Yes, I agree.

The one crypto for everybody is the SDR with backing from major fiat currencies, assets, and current cryptos.  This will be a truly global civilization.  When this happens, you will see less war, hunger, and bickering....

I'm wait for this to happen.  This unique crypto will give everyone a given amount of crypto at birth.  This is truly a system of basic income where the poorest of the poor get to live well, while the rich of the rich still have the ability to consolidate wealth.

Both sides have to agree before we have a truly civil society where all people can live...

I Feel a little Qeasy's picture

"backing from major fiat currencies", LOL, funniest thing I've read in ages!

You are the stupidest cunt in creation, congratulatios. Sorry no prize. (Can't stop laughing.)

JibjeResearch's picture

You are not the first to laugh at me... I got it... I don't feel it anymore...

I made it from dirt poor to the top 10% ...

Next up... reaching the top 5% ...


ReturnOfDaMac's picture

"civil society where all people can live".  May want to watch the game a little closer.  Ummm, who said "all people can live"?  

JibjeResearch's picture

It's my dream, I can dream... I think!

ReturnOfDaMac's picture

Yes, you can!  No downvote from me.  World peach, a great dream, so dream on my friend, dream on.

DaveyJones's picture

but then who will we kill? We like to kill

and Hillary loves it

it's funny how the movies make the humans immediately cooperate when the aliens land

when in reality, the biggest threat to the humans, is the humans

JibjeResearch's picture

Well, killing wasn't in my plan..

and, shit, this thread of mine hasn't gotten down voted yet... Yet!

Balwahah ahahahaha

JibjeResearch's picture


Bawhw ahah ahaha ahhha ahhhhh ahahaha... Russia/China are not always right...

Crypto is the way of the future..

We shall see who is right....


JibjeResearch's picture

Ever time I bash Gold, I get down voted lolz ehehee ... Every single time ... seriously lol eheheheh

monger's picture

Irrelevant to morons. Which neither Russia or China are. We shall see who is right and who is wrong.

InnVestuhrr's picture

Logic => shiny shit is irrelevant

DownWithYogaPants's picture

Scarce engineering materials like silver and gold will be ignored until they are not.

Dragon HAwk's picture

You know, I'm not so sure i trust the US government anymore either, maybe I should Diversify into Gold Also. 

DownWithYogaPants's picture

Diversity is our Strength!  WEO my how those prices have changed!

new game's picture

gold has become the redheaded child that doen't know who his or her parrents are. against the odds, many a hollyweird story line has been written and this one will prevail. for thismain reason, it is physical and has no liability once possessed. just be carefull about the paper trail...

Pearson365's picture

Yeah.  Andrew Maguire says his contacts in China tell him something's brewing in the gold market.  Boom.  The price drops nearly $20.  Pure genius

SunRise's picture

$20?  If you have any item currently valued in the Marketplace at nearly $1,300,  try and sell it on Craigslist and see; when the bargaining starts, if $20 isn't very small noise.

Pearson365's picture

Ok.  Please send me $20 of every $1300 in transactions you make since it's just irrelevant noise.   Get 100 of your friends in on this special deal and I'll retire.

BobEore's picture

Looking down the list of gold gurus lined up at the bottom of the page here...
Dave Kranzler... Craig(I don wanna be a 'turd' no more)Hemke and Jim "Sillie" Willie...

one can't help but feel trepidation for the future of our beloved metal. Three blind mice, thrown into a barrel of monkeys... would got a better track record of predictions over the past 7 years than those tossers.

Rory on the other hand... once had an interview on with a guy who had ACTUALLY BEEN TO CHINA... AND
delivered the goods on the real story of China/Gold/Solar and the interconnection between all 3...

what the fakenews GOLDMAFIYA works desperately to hide here... every day o the week!

So I'll excuse him for this turgid piece of tired treadmill tripe he typed... this time...

and celebrate the impending demise of 'MR GOLDS' FREAKIN AFREAKAN SAFARI ADVENTURE...

with a couple of oldie goldies from my vault of 'stored value!

Greenspazm's picture

Turd "200 day moving average" Fungusson, lulz

I seriously doubt if "Jim Willie" is that joker's real name. Just as ludicrous as "Bix Weir", "Blow Pony" or "Clif High". Biggest joke: his prediction that China was going to triple gold and silver prices after the new year fireworks in February 2015.

Andrew Maquere has no credibility left but is not embarassed to appear regularly on KWN with his "accruing massive underwater derivative positions syntheticallly driving the market bottom flywheeling naked short longs wagging the dog in the EFP paper physical Shanghai India silver LBMA" and the supposed "physical exchange" that was to blow away the Crimex in 2015. And the 250 ton purchase by "sovereign entities" that was to put the gold price into orbit in July 2017. Er- about that 250 ton purchase - well, it's been postponed !

DownWithYogaPants's picture

He is pumping gold so hard and looking for sponsorship from the likes of the Dr Doom firing Sprott Money.  

Short term his predictions are ludicrous and YT level shilling for eyeballs.  On the other hand much of what he says is based on reason that is hard to dispute.

If I was Russia or China I would be looking to obsolete the current monetary system.  Thankfully they appear to be doing it with caution.  Perhaps they can afford upheaval even less than the West.  Perhaps it is in we people's of the west advantage for the whole shithouse goes up in flames quickly because we have a history of dealing in a more autonomous fashion.

Beyond this I am stumped.

MonkeySmoke's picture

@BobEore - you are referring to an interview with Jeff Brown when all the Chinese data for the import/export of silver and the impact on the physical silver market was presented - Jeff did a fanatasitc job for that show. That is one of my favorite shows.

Volkodav's picture

      Viewed Jeff Brown interview months ago

      Daily Coin subject China far better info than most


BobEore's picture

\\\\\\yu got it Pontiac!/////////

fANtastic piece... which like all of that sort... disappeared from notice as soon as published ... jus like the GOLDBUG MEDIA MAFIYA disappears up BIG GOLDS' ASS...

whenever folks here question the consensus trance storyline!

I Feel a little Qeasy's picture

What percentage of Americans own any gold then toss-pot? Is it close to fuck all? I thought so.

So much for your 'consensus' trance storyline, you fuck-wit.

BobEore's picture

Hey = now that's a comment I can work with!

Unable to even grok the point made = that a tiny fraction of the populace who own some gold was hijacked years back -

by a tiny and tinny fraction of their community who hadn't a clue about how to go about making gold WORK for them as a financial survival tool -

and who loudly shouted down those who did now know - and went about doing just that...

the residue of loser troll halfwits amongst that group of roadkill warriors now littering the highway to hell with the dead and decaying corpse of their failed "investment strategies' and 'fake news' storylines - about China and the Brics etc.,

still show up here to barf on every thread where folks might choose to finally get real and talk about it...

while complete morons like our touchy/feely internet tuff turd I'm talkin to right now...

don't even have a conceptual entry point to the ongoing conversation here ... having arrived with late stage dementia which cause them to believe that coating the walls of their cell - and this thread - with shit...

is actually a way to communicate with the rest of us!

Bless me, yu are one stupid turd lad!

DownWithYogaPants's picture

Sent a link once to Willie.  Responded "oh research!  I don't feel like do any of that".

I had been a listerner and still think some of his sweeping concepts are correct.  On the other hand that reply took my estimation of his output quality down a few notches.  Sorry Jim! 


BobEore's picture


much like... yurself...

is a CREDENTIALED poseur pontificator - and PHD'd "statistician" whose paper diploma ... much like the ones' which read ELECTRICAL ENGINEER ... OR nUclEaR Scientist grants him the sense of ENTITLEMENT that allows him to SWAGGER around the internet dropping the most patheticly misguided opinions around

with nary a look behind at the sorry track record which statistically speakin... comes closer to NIRP THAN ZERO..

while collecting cash - not gold one notices... hehehe...

from half wits too stupid to do their own research, and who take out their 'feelings' of bitter chagrin about having lost not just the cost of their subscription - but most of their capital - by buying into fake news CONSENSUS TRANCE storylines of the kind offered by jim... SgT Rocckx... Kookoo Jansen... and the rest of the cast of ghouls whose foolish followers now litter the sides of the road...

and the sides of every gold-related thread here an elsewhere, with their dried fecal matter and projectile vomit such as we have recently seen YOU disgorge...

as a substitute for any argument... insight... or EVEN... opinion remotely related to the subject at hand.

And then run away and hide when challenged to produce something more than smoke outta their ass. When you are ready... and sufficiently sober to ciimb back in the ring clownboy...
It's about that conversation regarding GOLD/CHINA/SOLAR... which you fled from...

Bring everything ya got... yu gonna need it!