….Just a few months ago, traders were betting that Russia would have to sell its gold reserves. But the newest data show the exact opposite. Russia is now buying more gold than it has since the days of the Soviet Union.
It’s a smart strategy that has helped to stabilize its currency, the ruble. And it will prove even more beneficial if China really is planning to create a gold-backed super-currency, as some speculate.
Russia is also selling off its US Treasuries. This is all part of Russia’s (and its pal China’s) plan to undermine the US dollar. Casey Research analyst Laurynas Vegys parsed the data, and he says the message is clear. “By offloading treasuries and loading up on gold, Russia is making an all-in bet against the US dollar, in favor of the yellow metal.”