Russia-China Combined Gold Reserves Could Shake US Dominance in Global Economy
The comments above & below is an edited and abridged synopsis of an article by RT
The gold accumulated by China and Russia could part of a strategy to move away from international trade denominated in US dollars, according to Singapore’s BullionStar precious metals expert Ronan Manly.
Manly says that there is a shift occurring regarding the two countries building up their gold reserves; they may return to gold-backed currencies in a move away from the global dominance of the US dollar, which is no longer supported by gold.
“China and Russia have both been aggressively accumulating their official gold reserves over the last 10 to 15 years,” he said, adding that a decade ago each of them held around 400 tons. “But now both these nations hold a combined 3,670 tons of gold.”
“Interestingly, both Russia and China publicize and promote their accumulations of gold and publicly refer to gold as a strategic monetary asset. They make no secret of this. But on the flipside, the US does the opposite, and constantly downplays the strategic role of gold.”
According to Manly, for Russia and China gold is the only strategic monetary asset that could provide independence from the US dollar.
Manly said Russia and China could be holding a lot more gold than they declare in their official reserves due to many channels through which they could buy the precious metal.
“If China and Russia… showed that they held more gold on a combined basis than the US, this would, even symbolically, be a blow to the US dollar and to the position of the US in the global economy,” the expert concluded.