Waning confidence in Anglo Saxon economic block sends world’s central banks on buying spree, collecting gold as the US hegemony is coming to an end.
Central banks are among the largest purchasers of gold. So far in 2019, they have bought 145.5 tons of gold, which is more in a quarter of a year than central banks have purchased in the preceding six years.
To put it bluntly, this figure represents a 68% increase from the year before. Last year, central banks increased their reserves by 651.5 tonnes compared to 375 tonnes in 2017. Reportedly, this is the largest net purchase of gold since 1967.
Most interesting, however, is the class of countries that we find are turning to hoarding more and more gold, many of which are deemed to be adversaries of Washington.
As always, Russia is the largest buyer of gold. In 2018, Russia’s Central Bank purchased 274.3 tons of gold. It also dumped 84% of its US treasury debts.
Turkey, has also signaled a shift away from the US-EU alliance and a greater willingness to cooperate with US economic and military rivals such as Russia, China, and even Iran, has sold off around 38% of its US debt and purchased more and more gold.
Malaysian Prime Minister Dr. Mahathir Mohamad recently called for the formation of a new currency backed by gold, which he believed would protect East Asian economies from trader manipulation.
Dr. Mahathir Mohamad spoke about the influence of the US regime and how it was not advantageous for the international financial markets to be tied to a single currency belonging to a nation state.
Once upon a time, the US dollar was backed by the gold standard in a framework known as the Bretton-Woods agreement.
The system ended up being short-lived, as President Richard Nixon announced that the USA would be abandoning the gold standard in 1971.
Instead, the Nixon Administration reached a deal with Saudi Arabia which became known as the Petrodollar Recycling system as the nations involved would have to invest excess profits back into the USA.
RT. com / ABC Flash Point Gold News 2019.