Gold is “an excellent substitute for traditional investment in US dollars.”
News with Rick Sanchez –
Russia Joins China in De-Dollarization Drive
(Image source)
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– 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.
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– 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
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
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)
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