originally posted by: Jamie1
I would put little stock in this article.
It's published by a financial site that's trying to sell gold. These types of sites have been claiming Russia and China have been buying gold for
years, and that the price is going to go up.
How about putting stock into Reuters reporting Russia's gold?
"Dec 23 (Reuters) - Russia raised its gold reserves for the eighth month in a row in November, while Ukraine reduced its bullion holdings for a second
straight month, according to International Monetary Fund data released on Tuesday.
Russia, the world's fifth-largest holder of bullion reserves, raised gold holdings by 18.753 tonnes to 1,187.493 tonnes last month."
originally posted by: burdman30ott6
a reply to: Dabrazzo
Russia is the second largest oil exporter in the world currently prior to this current hiccup, exporting 5 million barrels per day of crude and they
were the largest natural gas exporter in the world, providing about 20% of the world's gas imports. The world would survive, so that statement was
certainly overdramatic, but there would be some serious changes needed and some significant pain felt if Russia's supplies were cut off to the
Also remember that Russia will be better off keeping all that extra oil and gas for themselves to use. Russia exports way more stuff than they import
in return and has done for more than a decade. They give the rest of the world stuff in exchange for? Other countries promises to pay something back
one day! The world owes them big time.
"Russia runs regular trade surpluses primarily due to high exports of commodities like crude oil and natural gas."
originally posted by: wdkirk
As of 2014 no nation uses a gold standard as the basis of its monetary system, although many hold substantial gold reserves.
Also there is not enough gold currently mined and owned to cover ALL of the nations of the world currencies to support a change back to a gold
The more gold in play, the less it will be worth so mining more gold will devalue it.
chess player he is not.
Now that's just silly, there is only not enough gold at the current
paper market price, but gold is arbitrary, it can be priced at any level to
fit the circumstances. Also countries that want reserves only deal in physical gold, the paper market price is not relevant to them.
From this Wikipedia below which is scarcer, paper or physical gold?
"The average daily volume of gold and silver cleared at the London Bullion Market Association (LBMA) in November 2008 was 18.3 million ounces (worth
$13.9 billion) and 107.6 million ounces (worth $1.1 billion) respectively. This means that an amount equal to the annual gold mine production was
cleared at the LBMA every 4.4 days"
Global gold mining adds about 1.5% per year to the total stock of above ground gold, mining gold does not determine it's price, the paper markers do
that. Mining does not determine the value or utility of gold either, the current holders of the physical stock do that, they hold and keep off the
market 98.5% of the world's gold each and every year.
When there is a large amount of turbulence in currency, balance of trade and paper gold markets the value of having physical reserves becomes very
apparent. By then it's too late to buy physical at the current paper price, Putin seems to be moves ahead in this regard, well played Vlad.
edit on 7-1-2015 by inthewinterdark because: formatting