Daily Market Update

Russia Buys 600,000 oz Of Gold In May After Dumping Half Of US Treasuries In April

  • Russia adds another 600,000 oz to it’s gold reserves in May
  • Holdings of U.S. government debt slashed in half to $48.7 billion in April
  • ‘Keeping money safe’ from U.S. and Trump – Danske Bank
  • Trump increasing the national debt by another 6% to $21.1 trillion in less than 18 months
  • Asian nations accumulating gold as shield against dollar devaluation and trade wars
  • Russia dumps Treasuries for gold and in a Trade war China and others may do the same …


Source: Goldchartsrus.com

Bloomberg, Reuters and other media are now reporting that Russia dumped Treasuries in a major way in April and today comes news that Russia bought another 600,000 ounces of to add to its already sizeable and growing gold reserves.

This is something we have written about since 2004 and have spoken about on Bloomberg TV, CNBC etc for many years.

It is not just Russia that is diversifying into gold in recent months and years. India, Turkey, Mexico, Iran, Kyrgyzstan, Kazakhstan, Belarus, Uzbekistan, Tajikistan, Mongolia and of course China have been increasing their gold reserves.

Trump’s erratic and risky economic and foreign policies pose a risk to the dollar as the reserve currency of the world.

The deterioration in the US fiscal and financial position has been happening slowly for many years but accelerated under Bush II and Obama. Trump inherited a heavily indebted U.S. with nominal debt just under $20 trillion (19.9T). In just 17 months this has increased by another 6% to $21.16 trillion. There are unfunded liabilities of around $100 trillion…

We are moving to a multi polar world which will see China become a more dominant player and Trump is exacerbating this trend.

Source: Bloomberg

The risk for the US and global economy is that if trade wars intensify with China, Russia and other nations then this trend may deepen. This would likely lead to a lower dollar, higher interest rates and much higher inflation.

It is creating a very bullish scenario for gold and the present bout of weakness presents a buying opportunity for value minded investors to diversify and accumulate gold while it remains weak.

The end of the dollar reserve standard and the petrodollar and the flow of gold from the West to East and what this what means is something we covered in the latest Goldnomics podcast:

News and Commentary

PRECIOUS-Gold prices drop to 6-mth low on strong dollar, U.S. rate outlook (Reuters.com)

Gold prices inch up, but firm dollar limits gains (Reuters.com)

Powell, Draghi express concern over trade wars (MarketWatch.com)

U.S. existing home sales fall for second straight month (Reuters.com)

US: Current-account deficit increased to $124.1 billion Q1 of 2018 from $116.1 billion (FXStreet.com)

Deutsche Bank fined over ‘improper’ forex conduct (FT.com)

Russia Dumps US Treasuries For Gold – China Next? (BloombergQuint.com)

Tiny Asian Nation Hoards Gold as Shield Against Trade War (Bloomberg.com)

Trump’s Fickleness Is “Dulling” Gold’s Appeal For Now – Deutsche Bank Say (Bloomberg.com)

More on COMEX “Exchanges For Paper” (GoldSeek.com)

Silver Broke Down in 1971, Then Skyrocketed In The 1970s (KingWorldNews.com)

 

Listen on SoundCloud , Blubrry & iTunesWatch on YouTube below

Gold Prices (LBMA AM)

20 Jun: USD 1,273.25, GBP 967.29 & EUR 1,100.60 per ounce
19 Jun: USD 1,279.00, GBP 971.14 & EUR 1,108.89 per ounce
18 Jun: USD 1,281.25, GBP 966.96 & EUR 1,103.93 per ounce
15 Jun: USD 1,300.10, GBP 978.98 & EUR 1,120.04 per ounce
14 Jun: USD 1,305.30, GBP 971.27 & EUR 1,103.89 per ounce
13 Jun: USD 1,294.40, GBP 971.58 & EUR 1,101.92 per ounce
12 Jun: USD 1,298.30, GBP 968.27 & EUR 1,100.44 per ounce

Silver Prices (LBMA)

20 Jun: USD 16.29, GBP 12.38 & EUR 14.09 per ounce
19 Jun: USD 16.36, GBP 12.42 & EUR 14.16 per ounce
18 Jun: USD 16.61, GBP 12.53 & EUR 14.29 per ounce
15 Jun: USD 17.23, GBP 12.96 & EUR 14.86 per ounce
14 Jun: USD 17.12, GBP 12.75 & EUR 14.48 per ounce
13 Jun: USD 16.91, GBP 12.68 & EUR 14.37 per ounce
12 Jun: USD 16.85, GBP 12.58 & EUR 14.30 per ounce


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Mark O'Byrne
Executive Director

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