Russia Triples Gold Reserves in Preparation for Full-Scale Economic War with the United States

By Jay Syrmopoulos

The Central Bank of Russia has more than doubled the pace of its gold purchases, and tripled its gold reserves—from around 600 tonnes to 1,800 tonnes—bringing its international gold reserves to the highest level since Putin became president 17 years ago, according to the World Gold Council.

The impetus for the massive increase in Russian gold reserves is their desire to break away from the hegemony of the U.S. petrodollar and dollar-based payment systems. Currently, over 60 percent of global reserves and 80 percent of global payments are denominated dollars, according to James Rickards, author of Currency Wars.

Additionally, the U.S. is the only country with veto power at the International Monetary Fund, known as the global lender of last resort. Thus, one of the most crucial weapons wielded by Russia, in its war to free itself from the hegemony of the petrodollar, is gold.

The reason gold is so critical is that it cannot be manipulated by U.S.-based economic warfare, as it cannot be frozen out as other forms of digital and paper fiat can be.

Gold can simply be loaded onto pallets and shipped to another state to make a payment, thus bypassing targeted economic sanctions that are often used by the United States as a means of attempting to force geopolitical compliance by Russia and other countries. The strategic significance of gold is so great, that even when oil prices and Russian financial reserves were collapsing in 2015, they continued to acquire gold.

In fact, during the second quarter of 2017, Russia accounted for 38 percent of all gold purchased by central banks. The massive increase in Russian gold reserves has taken place while simultaneously abstaining from purchasing foreign currency for more than two years.

Even as global demand for gold fell to a two-year low in the second quarter, Russia maintained its strong position due to gold being one of the most geopolitics-proof investments in the world. In a time of increased economic warfare, with the petrodollar being utilized as a weapon by the U.S., gold is a means of bypassing U.S. sanctions.

“Gold is an asset that is independent of any government and, in effect, given what is usually held in reserves, any Western government,” said Matthew Turner, metals analyst at Macquarie Group in London. “This might appeal given Russia has faced financial sanctions.”

In addition to being the largest international purchaser of gold, Russia is also one of the three biggest gold producers in the world, as the Central Bank of Russia purchases gold from domestic mines using commercial banks and not in the open market.

Russia’s accelerated pace of gold bullion purchases began in 2007, with Russian gold holdings now having quadrupled to 1,556 tonnes at the end of June. In terms of total reserves, Russian now comes in just behind China and has more gold reserves than India, Mexico and Turkey combined, with a total of nearly $427 billion in reserves.

Additionally, Russia is simultaneously pursuing other strategic dollar alternatives besides gold. Russia and China have built a non-dollar payment system for regional trading partners.

One of the most threatening uses of U.S. financial influence has been its utilization of the SWIFT payment system, which acts as a hub of global money transfer message traffic, as the U.S. threatens to cut other nations off from the system if they refuse to be subservient to U.S. hegemonic dictates.

Russia clearly understands its vulnerability to U.S. domination and has worked diligently to reduce that vulnerability. In turn, Russia has created an alternative to SWIFT.

“There was the threat of being shut out of SWIFT. We updated our transaction system, and if anything happens, all SWIFT-format operations will continue to work. We created an analogous system,” Elvira Nabiullina, head of Russia’s central bank, reported to Vladimir Putin.

Russia is also part of a reported Chinese plan to install a new international monetary order that excludes U.S. dollars. Under that plan, China could buy Russian oil with yuan and Russia could then exchange that yuan for gold on the Shanghai exchange.

Jay Syrmopoulos is a geopolitical analyst, freethinker, and ardent opponent of authoritarianism. He is currently a graduate student at the University of Denver pursuing a masters in Global Affairs and holds a BA in International Relations. Jay’s writing has been featured on both mainstream and independent media – and has been viewed tens of millions of times. You can follow him on Twitter @SirMetropolis and on Facebook at SirMetropolis. This article first appeared at The Free Thought Project.


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17 Comments on "Russia Triples Gold Reserves in Preparation for Full-Scale Economic War with the United States"

  1. Putin and russia must protect themselves from the multinational globalization, which has control over much of the rest of the world. May the force be with him.!

  2. Louis Cammarosano | October 22, 2017 at 2:24 am | Reply

    You left out that russia’s US Treasury reserves have nearly doubled over the past 18 months- see smaulgld

  3. an economic system based on uranium sounds like a good idea

  4. The globalist unholy bankers that kontrol the unFed and banks in most every continent are the evil that infiltrates the populace with their demonic practices.
    END the Fed and all zentral banks.
    Silver stakes required.

  5. The Shanghai Coalition doesn’t use so much as an “alternative” to the SWIFT system, as they are using a version of it which was designed to work WITH the SWIFT system. This subject is a lot more complex than presented, and more than I understand, but it works on the same globalist agenda as before. Just a different puppet at the top of it.

  6. russia and china creating their own globalism, and the peasants are forced to choose between shit and more shit.

  7. >>>The reason gold is so critical is that it cannot be manipulated by
    U.S.-based economic warfare, as it cannot be frozen out as other forms
    of digital and paper fiat can be.<<< EXACTLY. Otherwise, Putin would be stockpiling Bitcoin and Etherium.

  8. Putin completely understands (((currency counterfeiters))) and the need to rid his nation of their influence. Bless you, Mr. Putin.

  9. Alleged-Comment | October 22, 2017 at 5:21 pm | Reply

    Who keeps saying they are our friends? Why the Demoncraps, of course. They are COMMUNIST also and can NEVER be trusted.

  10. It’s economic war against joooo money, not against the people of the United States.

  11. In the past 300 years the USA had the greatest opportunity to be the best country for Peace , Prosperity, and all that good shit that goes along with it. Instead, after slaughtering the native population and becoming that great country with continuous revenues, prosperity for their people and the possibility of creating a super continent – they just continued to slaughter country after country and let foreigners run their country. Too late now, the foreigners and their corporations have looted the public savings accounts and introduced taxation on the people both federally, stately and locally – to the tune of upwards of 45%. And the people just look up or down or sideways as if it’s OK. Take your money – sell your shit and leave !

  12. Brian Wilshire | October 23, 2017 at 11:17 pm | Reply

    The value of gold is an illusion which is widespread in times of plenty. When the SHTF, there’ll be no guarantees that gold will be tradeable for food, medicine or fuel. Read Pat Frank’s “Alas, Babylon” (it’s available free on the ‘net) for a clear picture of an apocalyptic changing of values.

    • Yes. While I haven’t read that book; I do know you can’t eat gold. Nor does it cure infections. Food, medicine (same thing actually), tools, skills, and ammo are far better assets to possess. For those who think hoarding gold is a good idea, think of FDR. That little scam cost people fortunes.

    • I think that when the SHTF gold is not intended to trade for food or immediate survival.
      Anybody that has gold or silver will also have been savvy enough to have a considerable store of fresh water, long life food, medicines and shelter.
      Gold is there for wealth and rebuilding one’s life AFTER the SHTF has occured and a level of order and daily life has returned to the country which could be just a few months. Currencies can be abolished and fiat savings wiped out but gold is gold no matter where we are on this planet.

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