Russian constant buying of gold

What is their end goal here? No matter the ever tighter financial crisis for them, they have continued to buying it during these 2 1/2 years. They and China remain the only major countries which are increasing their stockpiles, and pace of russian buying is x2 faster than the chinese one. Are they aiming for gold backed ruble after $ stops being world trade currency or what?

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usdebtclock.org/gold-precious-metals.html

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Well, their currency is dead and burried, so it's not that weird.

Peg the rouble

undermining dollar

Could someone explain to me what's so special about a gold-backed currency?

You can't print gold.

tass.com/society/913652

gold is actually worth something,not just a number on a screen

They're buying up gold because they realize that a crash is inevitable

Well, for one you can't inflate it out of your ass. Growth is caused by growth, not some imaginary banker numbers. Also the banks can't pull up money from thin air.

>why would someone buy precious metals?
are you stupid?

albeit gold is a little less intelligent of a buy since it's worth is imaginary
but china's buying silver is nothing but an intelligent move
just because money isn't backed by bullion anymore doesn't mean it's a bad idea to stockpile it

i myself am buying silver and palladium

They think long term.

using gold for anything other than electronics is degenerate

Not really, besides it's use in electronics the value of gold is superficial.

why? because you think its pretty?

>Also the banks can't pull up money from thin air.
The fact that they do exactly that, is the underlying problem though.

it is a finite resource that doesn't degrade with time
that alone gives it value

>Are they aiming for gold backed ruble after $ stops being world trade currency or what?
It might be a new currency but basically yes, China and Russia is going for gold and the US is going for infinite credit expansion and debt.

they're preparing themselves for the inevitable fall of the us economy and the dollar

Look up the term fiat money. Basically, a currency is a promise, an IOU. It is most useful and valuable when backed by something with inherent or unchanging value. Gold is the standard because it is not common place enough to be over saturated but there's enough to make it an actual standard.

Originally it was just gold. But then banks became a thing and gold was the standard.

Other cultures might have different standards. There's an island somewhere that still uses these massive stones with holes in the center as a currency back.

This is all basic economic principle. Money without any kind of backing (which could be other valuables) is just paper.

You have to back it with something. Precious metalls have value in production at the very least. Most currencies are just paper and zeroes on a screen.

Why don't they just buy bitcoins. Or better yet, steal them. They're notorious internet hackers and thieves.

They are preparing for hte possible scenario of the fall of fiat currency, if they are the ones who have the most gold and we go back to a gold backed system then they suddenly have the most valuable currency

When the dollar crashes(and they will), they will not be BTFO.

I just stole your anal virginity, whatcha gonna do about it bitch boy?

Because it's retained value for thousands of years. Meanwhile paper has lost value every day for ever cuntry, and is replaced every hundred years or so.

All this seems a little odd since Siberia and the Arctic are full of undisclosed gold mines. (That aren't declared to keep gold from crashing)

Because it's scarce, unlike digits on a screen.

To demonstrate, check my digits right now.

To own a lot of gold.

This
Economic catastrophe

They fell for the gold meme. They also don't want to but US debt like before and they will be punished for this eventually.

There's nothing special about it. Gold-backed currency is an outdated concept from the old times. Gold standard doesn't work anymore, it is incompatible with the modern economy, otherwise Nixon wouldn't have ended it in 70's, after all other countries abolished it.
If you want to live in 19th century again then go ahead, reintroduce the gold standard.

It's Russia anons. They are more likely buying up gold to crash the market by dumping it all at once in the future. Russians only believe in vodka and tobacco during an economic crises. Maybe cabbage too.

basically got it.

Every time the government prints a dollar it decreases the value of every other dollar in existence by a very small fraction. So if the government prints a trillion dollars then supposedly a trillion dollars worth of value was just lost from the overall money supply. It's a way for the government to steal value off of your money,

Can't do that with gold, although I suppose they could still hoard it to drive value up.

> cabbage
What? It's Slavs, not Chinks

Underrated post

Russia was preparing to go to war with the US for real, they were going to use gold backed currency to start a sell off of the us dollar and cause inflation to fuck us over. The only realistic way to beat the us, imho.

They probably want more stable holdings.

>Every time the government prints a dollar it decreases the value of every other dollar in existence by a very small fraction. So if the government prints a trillion dollars then supposedly a trillion dollars worth of value was just lost from the overall money supply. It's a way for the government to steal value off of your money

Well, technically it's not the government who does it, it's the Fed. And the only reason why you have any money at all, is that they are doing it.
You like gold-backed currency? Well, ok, then enjoy your high unemployment, lack of social security and deflation.
Gold-backed currency means no stimulus packages, more poverty, no infrastructure projects to create jobs (like the 1 trillion dollar one that Trump is about to launch) and VERY limited lending to private business.

He is right. Cabbage is a meme food for hard times. Older meme than potato.

That could be true, especially for China.

Cabbage and cabbage 'caviar' were extremely popular in ussr. And still are, to some extent.

They don't have a lot of debt either, they're playing it safe once all FIAT currencies collapse they can have a currency backed in gold

>When the dollar crashes
THE DOLLAR INDEX HAS ROCKETED UP SINCE TRUMP

THEN WHEN INTEREST RATES START TO RISE THE DOLLAR ONLY GOES HIGHER

A HIGH CURRENCY ISN'T PARTICULARLY GOOD FOR EXPORTS, BUT DOLLAR SHOWS NO SIGN OF COLLAPSE

Because fiat currency is a spook.

Fiat currency is like 365 genders it doesnt mean or matter anything

Every currency is backed by something. In modern times, simply by the production of the issuing country. Which is a lot, for any industrially decent place. Russia can be scared because they focused too much on raw materials, but they'll have no long term problems. As simple as that.

dellusion

once the interest goes up every single bubble that's been created over 90 months of zero interest rates and QE will pop, and it's gonna be ugly

WONT BE UGLY FOR THE DOLLAR

>buy lots of gold
>keep it out of circulation
>value goes up
>dollar collapses
>you are now richest