Double Down: Vladimir’s Putin Billions Into Gold In Anticipation of Global Upheaval
September 10th, 2012
Federal Reserve Chairman Ben Bernanke says gold is not money. Berkshire Hathaway’s Charlie Munger claims it’s only for pre-holocaust Jews and that civilized people don’t buy it. The oracle of Omaha Warren Buffet scorned it as an unproductive asset and says he’ll never invest in it. Financial advisers rarely, if ever, recommend it for personal retirement portfolios and many people will argue that it’s not a worthy personal reserve because you can’t eat it.
For all intents and purposes, some of the most influential investors, monetary officials and financial pundits in the world completely deny gold’s value as a unit of monetary exchange and crisis reserve.
As worthless as it is, however, tens of billions of dollars have recently been shifting into this archaic asset of long forgotten empires.
In the last seven months alone the People’s Republic of China has added more gold to their reserves – over 500 tons – than the entire holdings of the European Central Bank. They aren’t alone.
Russia’s President Vladimir Putin has been aggresively investing into the precious metal over the last five years – spending some $500 million monthly as he diversifies his country’s assets out of Dollars and Euros. Currently, 9% of Russia’s reserves are held in gold.
This, of course, begs the question: why?