Goldman Sachs analyst Zach Pandel in a report published on May 4 believes that the status of the us dollar as a major international currency may continue to decline in the next few years, as the Russian-Ukrainian conflict continues, some financial sanctions imposed by the United States using the dominance of the US dollar will weaken the channel function of the US dollar (please note that the US dollar index is two different things), in fact, since the US dollar decoupled from gold into the era of credit paper, the US dollar has essentially entered the historical process of continuous recession, at the same time, The impact on and control of the world economy has also declined sharply. At the same time, many central banks (especially the eurozone) are thinking of storing gold in the United States.
In this regard, the US financial website ZeroHedge website analysis said that at present, many European countries, Turkey, Russia and some emerging economies are revaluing the strategic value of gold, as of the end of March, the global official gold reserves of 35536.8 tons, reaching the highest level in nearly 30 years (for details, please refer to the figure below).
Trends in global central bank gold reserves
According to data released by the IMI International Commissioner on April 25, 22 central banks in eastern Europe have bought the largest amount of gold since the pound crisis in the 24 months to April 10, which shows that gold still plays the role of an anchor of trust in the global monetary and financial system, and the logic behind this is relatively simple.
Because gold with economic and strategic value is still widely accepted as a hard currency that can be widely accepted around the world, it is also a power chip and a means of wealth storage on the international financial stage, which is also the fundamental reason why the United States needs to implement the dollar gold standard 50 years ago, which can be observed from the wave of gold stored in the Federal Reserve by many countries.
A gold mining site in Russia
According to the Russian media RT website on April 26 quoting the official Russian economist Nikolai Patroshev's latest speech, acknowledging that Russia is returning to the gold standard and is planning how to support the ruble with gold to establish a double-ring currency and financial system in the country, and is working to link the price of the ruble to gold and other commodities, in March, the Russian central bank also announced the fixed price of gold purchased with rubles, that is, a gram of gold is equivalent to 5000 rubles, And this also means that Russia is essentially moving closer to the gold standard.
At the same time, many countries are also setting off a trend of returning gold from overseas, BWC Chinese Network Finance team mentioned that due to various historical reasons, more than 60 countries (or international organizations) have deposited nearly 7,000 tons of gold in the Underground Vault of a 12-story granite building at 33 Liberty Avenue in New York (below). At this time, the foreign media reported a surprising news.
New York Federal Reserve Bank underground vault source bullion2
When the Bundesbank again applied to the Fed a few weeks ago to review the physical gold remaining in the Fed, it was rejected by the Fed on the grounds that it had unclear intentions and threatened financial security, and although Germany transferred a total of about 743 tons of gold back to its home country in 2017, the current existence of gold in the Fed is still as high as 1236 tons.
However, according to the US media zero hedging and Russian media RT website quoted by some institutions and professionals to explain that the Fed has no right to prevent or refuse investors including China, Germany, Venezuela, Poland and Russia to ship back gold belonging to their own countries, because the property rights of these gold are very clear, at the same time, the United States to maintain its main reserve status and credit of the US dollar, will not allow the disappearance of gold, and at this critical moment, things have made new progress.
A freighter was piled high with boxes of gold
According to the US financial website ZeroHedge reported on April 17 (for details, please refer to the figure below), France has repatriated all currency gold from abroad, France repatriated 221 tons of gold in a certain period of time from 2013 to 2016, and the amount of gold shipped back from abroad accounted for 9% of France's gold reserves. This is also the latest report we can find out about the repatriation of gold from abroad by central banks around the world.
On January 5, the head of the Central Bank of Poland also excitedly said on social media that it had carried out another operation to ship overseas gold stored in the United States back to China, and then shipped more than 8,000 gold bars back from overseas vaults such as the Federal Reserve and the Bank of England to show the country's economic strength, which was even more unexpected in the global market.
Polish officials hold physical gold nuggets in front of bank vaults
Subsequently, according to the latest industry data released by the Swiss and Dubai Customs quoted by the US financial website Zerohedge on April 30, Switzerland's gold exports to China have also increased sharply from 2021 to the highest in nearly five years (february and March this year due to a slight decline due to the epidemic), of which a total of about 209 tons of gold have arrived in China from Europe and the United States during March and April (please refer to the figure for specific data details).
Singapore's premier gold trader, Ronan Manley, tried to best explain this, and now smart global investors are coming to understand France's intentions to ship gold back from abroad, starting in the 1960s and now shipping gold back from abroad. They know that it is only a matter of time before the dollar will lose its status. (End)