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Russia gold reserve surpasses U.S. dollar holdings, U.S. now fourth in gold holdings.

By January 15, 2021 No Comments

According to Russia’s central bank, for the first time, the value of Russian gold in its forex reserves has surpassed their U.S. dollar holdings. While the U.S. dollar holdings declined to 22.2% or a total of $124.6 billion, the country’s total gold reserves shot up 22.9%, to a total of $128.5 billion. Russia halted their purchasing of gold back in April due to it’s increase in price per ounce, a 25% jump in 2020.

So, what does this mean?

As the conversation on a great currency reset becomes more and more likely, world leaders are considering the value of the U.S. dollar. After World War II, the leaders of major countries came together to discuss a new standard. Since, at this time, the U.S. had the largest holding of physical gold, it was decided the U.S. dollar would be the new standard. As of September 2020, we are fourth in the world behind China, Russia, and Australia:

  1. China – 383.2 tonnes. …
  2. Russia – 329.5 tonnes. …
  3. Australia – 325.1 tonnes. …
  4. United States – 200.2 tonnes. …

While this creates uncertainty on whether the U.S. dollar will remain the standard if there were to be another currency reset, there are other factors at play. The U.S. abandoned the gold standard under Nixon, switching to fiat currency instead. This means the U.S. currency is no longer based on physical stores of gold, which is why it’s so easy to print more money to meet fiscal demands like the one we are seeing now with the economic fallout of the COVID-19 pandemic. However, printing more money only contributes to inflation, while the recent financial stimulus has rapidly accelerated the previously projected growth significantly. Another asset that has made a big splash recently has been cryptocurrency, especially Bitcoin. However, as the famous digital currency took a plunge over the weekend, investors have pointed to precious metals as the ultimate and long-proven hedge against inflation. Bitcoin, like the U.S. dollar, has nothing to physically back it’s value, while precious metals only grow in value due to the fact that the sources are limited and demand with technology continues to rise. Major countries seem to be buying gold and precious metals as leverage for any shift in power or forms backing of currency.

What American citizens, especially retirees can do with this information is to look at the direction central banks and world leaders are going with their investments. There is a reason and strategy to where powerful entities invest, and we can only hope to imitate it in order to protect our financial future and hard-earned wealth.  Allegiance Gold has the ability to show you further details in all of the trending news that is currently taking place.  Make sure to contact us today for more details on how you can preserve your wealth and grow your portfolio.

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