Лучшая защита – нападение
(The best defence is an attack)

Лучшая защита – нападение<br> (The best defence is an attack)

Central banks have now been the biggest buyers of gold bullion for two years.

Yet almost none of this buying is coming from Western central banks.

You see, in the late 90s, Western central banks dumped the metal.

Australia dropped 167 tonnes of gold in one day in 1997.1

Canada sold some 500 tonnes between 1992 and 2002, leaving the Bank of Canada with zero gold in the vaults.2

The infamous ‘Brown’s Bottom’ saw Gordon Brown — the Chancellor of the Exchequer in the UK at the time — sell 395 tonnes of the yellow metal over three years.

None of those countries have bought an ounce of gold since.

This is in stark contrast to the central banks of Russia, China, Iran, Malaysia, Poland, Kazakhstan, Hungry, the Netherlands, Turkey, Mexico, Brazil and India, to name the more recent buyers.3

The point is, many central banks around the world are increasing their gold reserves.

Partly for protection from US sanctions and partly in a bid to move away from the US dollar.

Russia has been the largest buyer for over a decade, quadrupling its yellow metal position in that time.

As Jim explains today, it looks like Russia has revealed its strategy. It isn’t just out to protect itself from the US dollar, but may be launching a full-scale attack against US dollar dominance.

Read on for more.

Until next time,

Shae Russell Signature

Shae Russell,
Editor, The Daily Reckoning Australia

1 ‘https://www.abcbullion.com.au/media/pdf/ABC-Bullion-Make-Australia-Gold-Again-01.pdf’
2 ‘https://www.biznews.com/gold/2016/03/11/canada-sells-gold-reserves-browns-bottom-repeat’
3 ‘https://www.bloomberg.com/news/articles/2019-04-23/central-bank-gold-buying-gets-boost-as-india-s-reserves-to-swell’

The Market Trigger for Gold

World’s #1-ranked gold expert reveals why 2018 could be your last chance to buy gold at this ‘bargain’ price

Daily Reckoning Australia contributor, Jim Rickards, is our global expert on gold. And in this revealing interview he explains why gold is so important in the global financial system, even if central banks deny it. He also show you why a new gold rush is quietly taking place, as confidence in paper currencies fall. In this free interview report you’ll learn many things, including:

  • Why Jim recommends you get some gold now
  • Why China’s secretly hoarding gold
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It’s a fascinating and insightful interview. Simply enter your email address in the box below and click ‘Send Me My FREE Report’.

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