The U.S. dollar is being ditched by the world.  This is what you and I live on. 

The dollar is being treated like last year’s fake news and thrown into the bitter wind of failed fiat currencies, and it’s being replaced by countries who don’t respect it anymore.  The new standard in global value is now centered on precious metals — gold to be specific.  And where are we behind that learning curve?

That’s why Russia keeps buying it up and it’s probably no coincidence that the price is going up while they’re doing it. One can only wonder how much the U.S. has bought lately.

There are those who believe Russia is behind the rise in the price of gold.  Some call it conspiracy theory.  Others believe it to be conspiracy fact. Could this be why the U.S. media continues to attack Russia and their President Putin on all fronts? Because they control the asset that backs the next global financial system. Could this be the final death knell of the U.S. dollar?

Russia’s policy to ditch the U.S dollar from its reserves as well as its trade with other countries has resulted in the rapid growth of its gold holdings over the last year – an example that has now been followed by China and many other nations.

When it comes to playing the global currency war-game, Russia plays it better than most, having earned over $20 billion thanks largely to Washington’s trade stand-off with China, says Wolfram Weimer, columnist for Germany’s Web.dewebsite.  If you own gold you own profits. Why is it that there’s no talk of the U.S. Treasury buying gold? Couldn’t we use a profit?

This increase in gold prices around the world directly correlates with Russia buying up all the gold they can get their hands on.  It is no secret that Russia has been actively buying gold, becoming the biggest buyer in 2018, acquiring 274.3 tons, a trend that continues in 2019.  

Since Moscow adopted the new strategy, which is intended to reduce the influence of the U.S. dollar on the Russian economy, the precious metal’s price has spiked by 20%, Weimer indicates in his article.  Indeed, in the past three months alone, gold’s price has jumped from $1,264 per ounce (around $28 per gram) to over $1,500.

According to trading data the cost of gold futures on the Comex exchange has also increased, by 1.17%, reaching $1,501.6 per ounce. This is the first time that gold has traded above $1,500 per ounce since April 2013.  Gold is surely on the rise for a reason.

IS TRADE WAR HELPING FUEL THE RISE IN THE PRICE OF GOLD?

The rise in gold prices continues against the backdrop of the growing trade war between the United States and China. More and more investors are choosing to place their money in ‘defensive assets’, resulting in a ‘flight to quality’ and rising precious metal prices all over the world.

According to the World Gold Council, in January 2019, the US had the largest gold reserves in the world with 8,133 tons, although we seriously question this in our Gold Wars series, while Russia was in fifth place with 2,066 tons.

In his article, the German columnist argues that the US-China trade war has largely contributed to this rise as investors use gold as a safe haven during times of crisis and uncertainty.  Additionally, in Weimer’s opinion, the Russian Central Bank’s purchasing the majority of the gold produced domestically has created a certain supply shortage on global markets, further fueling the metal’s price rise.

RUSSIA HAS BEEN HORDING GOLD FOR A LONG TIME

This is all about the beginning of the global gold-backed currency reset. And we’re not being told about it.

Some experts claim Russia began to abandon its dollar-denominated assets around March-April 2018, selling over 90% of its U.S. Treasury bonds and directing its resources towards gold acquisition, with their total reserve reportedly now exceeding 2,000 tons. Others claim it was long before that. Either way, America’s Eastern nemesis appears to be unilaterally making great strides in changing the world’s financial system.

Russian President Vladimir Putin has made an open secret out of his desire to ditch the U.S. dollar in trade, arguing that Washington is abusing the dominant position of its currency in order to exercise pressure on sovereign states. The world is tired of being dominated through financial pressure behind the dollar.

This is why the de-dollarization trend has been followed by China, which recently became the second biggest buyer of gold, Turkey, Poland, Hungary, and Kazakhstan, among others.

Additionally, several countries, specifically the members of BRICS, have opted to reduce the use of the dollar in mutual trade, replacing the greenback with national currencies, oil, and precious metals.

This is all going to have a huge impact on normal asset prices, which are tied to the U.S. dollar, which our lives continue to depend upon. The truth in cost will come out in the wash. Assets are being revalued according to their historical and social worth to humanity. Derivatives and central banking are going the way of the rear-view mirror.

We need to wake up to this reality as we prepare for our families’ futures. We need to understand what place gold has in our family’s survival.