Good as Gold: Why Russia and China Are Busy Buying Bullion

Wednesday, March 30, 2016
By Paul Martin

SputnikNews.com
30.03.2016

The currencies of Russia and China are moving to become as “good as gold,” F. William Engdahl notes, explaining why the countries are buying gold at a steady pace.

Since US President Nixon unilaterally abrogated the 1944 Bretton Woods Treaty in 1971 the US dollar has been no longer backed by gold; however, gold still remains as a store of value which paper money cannot compete with.

“In times of world financial crisis as in the 1930’s, gold is preferred by central banks and ordinary citizens as a store of value when paper money loses value. We are approaching another of those times when the accumulated paper debt of the dollar system is debasing the worth of paper dollars. What’s highly significant in this light is to see which central banks are buying all the gold they can get,” American researcher, author and strategic risk consultant F. William Engdahl writes in his article for New Eastern Outlook.

Remarkably, the Central Bank of Russia became the world’s leading purchaser of gold, as it bought 356,000 ounces of the precious metal in February 2016, according to the International Monetary Fund (IMF).

In general, Russia increased its reserves of monetary gold by 208.4 metric tons in 2015 and continues to buy the precious metal at a growing pace.

China follows Russia with about 320,000 ounces of gold bought in February 2016, according to the Chinese Central Bank.
Interestingly enough, since the beginning of 2016 the yellow metal has become “the year’s best-performing major asset” rising by almost 16 percent.

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