The Liberty Daily The tightening Russia-China alliance is causing some analysts to wonder: Could they move to the gold standard?
Since World War II, the US dollar has been the “reserve currency” of the world — most Americans can’t remember anything different.
But the strength of the US dollar bothers other countries — especially Russia and China.
It turns out China and Russia have been stockpiling gold for many years — in the first half of 2019, they together bought 170 tons of gold.
From a Marketwatch article in 2019:
“There’s an obvious reason for China to buy gold. It wants to break up the global hegemony of the U.S. dollar — the hegemony that former French President Charles de Gaulle called America’s ‘exorbitant privilege.’ It wants to make its own currency, the renminbi, a world player. And Odey argues that buying gold bullion is a natural move. Gold reserves should add to world confidence in the Chinese currency.”
Fast forward to March of this year.
The Russian government announced they would no longer tax individual purchases of gold – which is what you do if you want your citizens to buy more gold.
Then came stories that Putin was “discussing” pegging Russian currency to gold:
“Russian President Vladimir Putin is discussing the idea of pegging the rouble to gold and other goods, the Kremlin said on Friday, a move that if approved would directly link Russia’s currency to bullion for the first time in more than a century.
A powerful Russian security official said this week linking the rouble to bullion could give Russia more ‘sovereignty’ over its financial system, which has been battered by Western sanctions since Moscow sent troops into Ukraine on February 24.”
If you look at a five-year chart for gold prices, you see an interesting trend:
Gold moved higher — and stayed higher after Russia and China bought a lot of gold in 2019.
Is this one of those long-term strategies the Chinese government is known for?
Are they partnering with Russia to undermine the US dollar — and get back on the gold standard?
If Russia and China move to the gold standard, interest in buying gold would likely go through the roof — and the value of the US dollar could fall.
Plus, there’s instability in the stock market. Uncertainty in crypto. Economic turmoil through the lockdown recovery.
These things and more are driving more people toward gold. You don’t need to think the end of the world is near (though it seems like that’s the case sometimes) to realize that gold should be a significant part of everyone’s portfolio.
If you’ve been thinking about getting into gold but have questions, we recommend you get a free consultation with Ira, the Liberty Gold Guy (plus, you’ll be supporting the Liberty Daily if you decide to work with him).
Ira will match your current financial situation with the best physical precious metal purchases. You will talk to a true expert in precious metals with decades of experience helping people protect and advance their wealth.
Analysts say precious metals are historically the most reliable and safest hedge against economic turmoil. With the Biden regime and globalists enhancing the chaos, it’s important for patriotic Americans to take control of their financial future.
Fill out the form here and we will schedule a precious metals consultation with Ira — the Liberty Gold Guy.
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Disclaimer: None of this is to be deemed financial advice of any kind. Please make financial decisions based on expert advice.
