The days of US Dollar dominance and position as the world’s reserve currency are rapidly coming to an end. Threats of sanctions and belligerent pronouncements against Russia are only quickening the inevitable collapse of the US Dollar.
A group of Lower House MPs are urging Russian oil and gas producers and traders to stop using the US dollar. They say this means sharing profits with the USA, and making Russia vulnerable to western sanctions.
Degtyaryov also said that Russia already had a bilateral agreement with China allowing payment in national currencies and this proved that such step was possible.
China launched two gold-backed Exchange-Traded Funds in Shanghai on Monday, a vital role in the opening-up of the country’s gold market, said analysts.
Continued innovation in the range of gold investment products available across a range of countries including gold accumulation plans in China confirms the healthy appetite for gold among investors, said Yang Yijun, chief analyst with Wellxin.com, a precious metals consultancy.
Russia continues its gold buying spree, adding 0.3 tonnes to its 996.4 tonne stockpile, marking a nine month increase, according to the IMF’s June statistics report.
Russia’s Central Asian neighbors followed suit in June- Kazakhstan boosted reserves by 1.4 tonnes to a total of 130.9, Azerbaijan added 2 tonnes for a total of 8 tonnes, and Kyrgzstan, which bought less than 0.1 tonnes to total 3.3 tonnes. Ukraine, Greece, Belarus and Bulgaria also added small amounts to their gold reserves.
While Eurobonds have survived everything from the Cold War to the worst financial crisis since the Great Depression the 82-year-old retired trader said he is “very, very bearish about what is going to happen in the very near future,” to the world economy. In part because of the printing of money by world central banks to stimulate their economies, he said.
“Within a year you will see gold at twice the price it is now,” Ross said.
Another Western financial institution opens gold vault in Singapore.
Switzerland’s biggest bank, started storing gold for wealth-management clients at a facility in Singapore, citing interest from investors in the region even after the metal slumped into a bear market.
UBS joins Deutsche Bank AG and JPMorgan Chase & Co. in offering storage services in Asia, where China may surpass India as the largest user this year. Bullion fell to a 34-month low on June 28 in a rout that’s erased $66 billion from the value of investor holdings. Goldman Sachs Group Inc. forecasts further declines as the U.S. Federal Reserve may withdraw stimulus.
Day by day physical gold is being emancipated from paper gold.
Precious Metals Exchange (SGPMX) has launched the world’s first physical precious metals exchange with peer-to-peer bullion trading capabilities integrated into the trading platform in Singapore on Wednesday, amid Singapore’s drive to encourage gold trading in the country.
The exchange allows traders to buy and sell precious metals securely and conveniently, supporting real-time transactions with internationally recognised mints. This addresses private investors’ issues with liquidity, and also eliminates the costs of assaying precious metals when traders purchase or sell the holdings.
“SINGAPORE — Deutsche Bank is opening a vault in Singapore that can hold $9 billion of gold, as it hopes to tap rising demand for the precious metal in Asia amid a push by the city-state to burnish its image as a bullion-trading hub.
Singapore last year scrapped a goods-and-services tax on gold in a bid to help boost its share of global gold demand to 10%-15% within a decade from around 2% in 2012 as it seeks to compete with more established bullion-trading centers.”