Why is Russia Buying Up All the GOLD?
Video Summary
Russia’s sudden interest in gold has sparked speculation about their plans to return to a gold standard. In the past, Russia’s central bank has attempted to peg the value of the Russian Ruble to the US dollar using gold as an intermediary. However, this plan was abandoned due to a lack of sufficient gold reserves. The value of the Russian Ruble has actually strengthened, making it more difficult for the country to export oil and maintain domestic employment.
The strength of the Ruble has an unintended consequence, making it harder for Russia to fund its military efforts in Ukraine. The country relies heavily on oil exports, and a stronger currency makes its energy exports less competitive. Russia may actually want to weaken its currency to boost domestic employment and economy.
Gold, on the other hand, has maintained its value as a store of value, unlike other assets such as cryptocurrency or stocks. However, experts recommend against investing in gold as a long-term strategy. Governments, on the other hand, view gold as a valuable asset, as it provides a store of value in times of economic uncertainty.
Russia’s pursuit of gold is primarily driven by a desire to diversify its assets and maintain a store of value in the face of uncertain economic times. The country is likely to continue buying and selling gold, even as the West imposes sanctions and boycotts Russian gold exports.