By Felix Brooks
The west and Saudis are attempting to crush the grip of Russia over Syria; this has resulted to decrease in price of oil which is its primary export.The attempt to crush the grip would result to the main supplier of gas in Europe Irrelevant (Gazprom). Due to the threat posed on the gas supplier, Russia is determined to slowly and diversify its currency (Dollar) into Gold which is the most asset that Western Central Banks hate.
Russia is holding relatively much Gold than Other Central Banks. Reviewing the Chart posted by TradingEconomics.com, I and anyone concerned with the chart is asking what the percentage amount of GoldChina is holding in terms of its monetary base. On the other hand Russia is viewed in the Chart with its relative Gold holdings and they are relative to fiat exposure (these holding are very impressive).
In early 2009 we have the information about China’s Gold; this is the time when PBOC released its last official update information to IMF. If you assume that this data has not changed for the last six years is ludicrous, but since then a report was released in 2011 by Wikileaked. The report was about the information that Foreign exchanges Administration of China gave about China’s rising Gold Holdings.
Gold is an international reserve currency and thus China wants to weaken its function. China and Russia wants to see other countries turning to U.S. Dollar or Euro instead of Gold reserves. In order to maintain the U.S. Dollar as the international reserve currency, U.S. depends on the suppressing price of Gold.
China hoarding Gold is acting as role model to other countries who would like to reserve more Gold.China is acting a model and leading others. The internationalization of RMB would be benefited much by Huge Gold reserves. You should not get shocked when china submits the next overdue Gold holdings report when you find its dot is located just above that of Russia.