First Take: What Russia Doubling its Gold and Yuan Holdings Truly Means
Happy New Year: You were right to own metals. It is right to have custody of them. You have been right for years and no longer need them to tell you so. We were right.
NOTE: Alot has happened in the last 72 hours that we thought needed to be put out about Gold, Silver, money, and the world in general. We PROMISE it won’t clutter your mailbox going forward. But this stuff is too important for our Metals and Energy people to not know before the MSM dilutes its true meaning. You are right to own metals. You are right to have custody of them. You have been right for years. You no longer need them to tell you that you are right. Happy New Year
It means things are not getting better and will get worse for everyone.
On Friday, Russia’s Finance minister announced their National Wealth Fund (NWF) is now permitted to allocate up to 60% of its holdings in Chinese Yuan and up to 40% of its holdings in Gold Bullion. This is a doubling in permitted allocation percentages up from 30% and 20%.
Simultaneously the fund reduced its holdings of the British Pound and the Japanese Yen to zero.
Reuters reports from Moscow:
Russia's finance ministry on Friday said the maximum possible share of Chinese yuan in its National Wealth Fund (NWF) had been doubled to 60% as it restructures its rainy-day fund to reduce dependency on currencies from so-called "unfriendly" nations. Source
Their NWF had been recently used to finance the widening budget deficit in 2022 due in no small part to sanctions by the G7. The Fund stands at $186.5 billion according to Reuters.
The official statement out of the ministry read in part like this:
"The Russian finance ministry is continuing its consistent reduction of the share of currencies of 'unfriendly' states in the structure of the National Wealth Fund's assets."
The news agency notes these measures are in no small part a counter to the sanctions by western nations.
Comment: This Is Not Temporary
We would strenuously add that while this “counter” explanation is true, the circumstances creating the situation are not likely to reverse even if sanctions are lifted and Ukraine magically healed itself.
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