Gold is “an excellent substitute for traditional investment in US dollars.”
News with Rick Sanchez –
Russia Joins China in De-Dollarization Drive
(Image source)
https://cdn.steemitimages.com/DQmUvL82cXWXmEfi2rcyoNQtmwxtBWxeVZdkA4N1oGkuJEx/image.png
https://www.youtube.com/watch?v=8el2elLGfJc
– Flash Points –
1 – The US$ is “losing its luster,” according to Rick.
2 – Russia feels it has no choice but to dump dollars for gold.
3 – The country is trying to stimulate production of imported gold.
https://cdn.steemitimages.com/DQmUvL82cXWXmEfi2rcyoNQtmwxtBWxeVZdkA4N1oGkuJEx/image.png
– Synopsis –
On a recent episode of his show, Rich Sanchez implied that the US dollar may not survive China and Russia’s challenge to dollar hegemony.
Jump Off the Bandwagon
https://images.hive.blog/DQmSkCTA3QZ7E7tgSYfQxnDjZ7iT461ZzC5zgrTic2j2546/image.png
In an earlier report, Sanchez had noted that China is losing confidence in the dollar. And rightfully so. Now, Russia has also jumped off the dollar bandwagon, ramping up its de-dollarization campaign.
Russia is fed up with being the subject of sanctions and other hostile actions from the USA. Consequently, it has decided to stimulate production of gold. Currently, the country’s precious-metals production is operating at only 30% capacity, as it is hindered by the 20% value-added tax (VAT) on precious metal imports. (Image source)
No VAT, just Vats of Molten Metal
Under a new law, the 20% VAT will be scrapped. That will encourage refiners to import more gold from Africa, Central Asia, and Latin America. As a result, production of gold in Russia is expected to double from the current 300 tons annually.
As Yulia Shapovalova stated, gold is “an excellent substitute for traditional investment in US dollars.”
https://cdn.steemitimages.com/DQmUvL82cXWXmEfi2rcyoNQtmwxtBWxeVZdkA4N1oGkuJEx/image.png
– Insight from Outside –
Russia has been looking to de-dollarize for about 10 years – if not longer. Over that time, it’s been slowly but steadily building up its gold reserves. Currently, it has the 5th-largest gold reserves in the world, but it’s gradually moving up the rankings.
Top Holder Toppled
https://images.hive.blog/DQmZWPVQ9Pvekcsfg4px3H48fpF1C1c8u1SkF6v3SszUNEx/image.png
And given that the gold holdings of at least 1 of the top 5 countries have not been verified / audited for decades, it’s very likey that Russia’s gold holdings are in fact the 4th-largest holdings in the world.
Over the past year, Russia had already increased its domestic gold mining by close to 10%. By scrapping the import VAT, it’s also making gold imports more attractive and lucrative. (Image source)
https://cdn.steemitimages.com/DQmUvL82cXWXmEfi2rcyoNQtmwxtBWxeVZdkA4N1oGkuJEx/image.png
https://cdn.steemitimages.com/DQmV6LQ56fzjq2PC6qDF5Dw6CXwyjsQj46hG6mVDPpnn39t/image.png
https://steemitimages.com/DQmaRbjQ7Pgj4eUr1u2FMdHCuajLf9gTV8k4WNEV2jZqCFM/image.png
/ https://newsvideo.su/video/10029245
I know that gold is very expensive and valuable. With what I'm seeing now there is a possibility that gold would be the new stock in trade.
I just want a situation where by the exchange rate between dollar and naira isn't that high.
If things are costly here in Nigeria they'll blame it on dollars😂😂😂
You'll hear a local trader say dollar don high~Pigin English
Even when the dollar drops in relation to the naira, the prices of many things in Nigeria might not fall. The local traders might explain the high prices by saying "Dollar NOT don high!"
😂😂😂😂😂😂😂
If the local trader wants to still explain the high prices of things in their pigin language it would be either;
You really tried in your unique translation of pigin but if you speak this type of pigin to them they'll get confused 😂😂.
Thank you very much for your response. I really smiled seeing it.
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Becky.
Right. I did not think my pidgin language was correct. But I assumed I'd get the message across.
Thanks for clarifying. Being a teacher / editor / writer, I love language, even pidgins and creoles.
"Dola soon fall." (my pidgin) 😂
😂😂😂😂
Ohh. I understand why you tried so badly to make a sentence.
I didn't make much changes, so yeah, you're on the right track in speaking pigin😂😂
"No be say dola no go fall, but e go te small"😂😂
Meaning: It's not that dollar won't fall but it's going to take quite some time😂😂
Thank you very much for trying
❤️❤️❤️❤️
Co-teacher
Becky.
Clearly, a pidgin is virtually a separate, unique language. I can hardly understand any of those sentences.
😂😂😂😂😂
Are you serious???
I'm surprised though
Well since I understand it I don't expect everyone else to.
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Becky
I have been following up your series on the death of dollar and i must say the fate of the dollar is obvious.
The global power is about to leave the United states.
I need more insight on the way precious metals work.
Its quite confusing as regards the economics?
Precious metals are simply "sound" money or "real"money – money that's been used for thousands of years. Its value is of course not inherent, as it's just a metal, but its value is based on its scarcity, its beauty, its usefulness.
Obviously, it's quite different from value-less paper money.
I could go on and on about how fiat money isn't a good form of investment and how we need to go back to representative money or commodity money. Infact, I just recently made a post about it here.
The best thing you can do for your future is invest in commodities. Gold has always been reliable.
I have heard about investing in precious metals. Infact every financial article i read right now talks about investing in gold and its likeslike but i need to know how it works? What happens when it is in your posession?
If you actually own physical gold bars or coins, then it's yours. If you own a paper claim to gold, then you own a valueless piece of paper. If you take that paper to the bank, you will probably NOT be able to exchange it for real gold.
Same with silver.
Yep. Gold and Silver and so on are real money, whose value is not based on counterparty trust. That's also true of decentralized crypocurrenies.
Yes. And also unlike fiat, history has shown that the value of these commodities are not volatile but in fact very stable. The kind of supply and demand that may affect other currencies greatly hardly affect commodities like gold.
The trade war between U.S and China is one that will stimulate alot of shakeup in the world global market. As i said in a similar post i saw earlier....alot of country will jump ship and follow suit in the devaluation of dollar. Russia on the other will gladly recruit and render help to any country that's ready to go to trade war with U.S just as Russia has been throwing open arms to all those leaving NATO. With the devaluation of dollar and increase in the value of gold Africa can also look at major diversification especially in the area of oil production so as not to be caught up in the trend. This post is quite a handful and a big insight. I always enjoy global politics
Indeed, a frightening "shakeup" is coming. As has been said, it starts with trade wars (done), it moves on to currency wars (done), and then it proceeds to real war. All the recent saber-rattling makes it clear where we are on that trajectory.
Hope you survive the "shaking."
Hope we all do
I think some countries need to learn from Russia how they restrategize their gold mining and making it the 4th largest in the world
Yep. Many countries still have a few things to learn. And if they do not learn soon, it might be much tooooooo late.