Monday, July 24, 2017

Turkey joins with Russia's alliance of energy countries ramping up their gold purchases

A week ago we wrote about Sberbank's inclusion onto the Shanghai Gold Exchange as it appears more and more that the Eurasian energy power is preparing with China for an eventual gold backed trade system that could potentially run on a blockchain platform.  And in addition to this, Russia has also been increasing their purchases of physical gold on the open market to the point where they are now 'officially' the 6th largest holder of gold in the world.

As the movement towards transitioning energy sales away from the petrodollar and into gold or a form of cryptocurrency backed by gold continues to take shape, more and more nations such as Belarus, Kazakhstan, Kyrgyzstan, and now Turkey are also buying large quantities of gold in preparation for this paradigm shift, and a change in the balance of power.

What caught our attention (besides obviously the ‘Russian Alliance’ –consisting of Russia, Belarus and Kazakhstan – buying more gold), was the behaviour of Turkey. Not only are the Turks buying more gold at a substantially more aggressive pace than the Russians adding 950,000 ounces of the yellow metal in just three months, the purchases are also much more meaningful when you look at the bigger picture. 
In just three months, Turkey has increased its gold reserves by in excess of 7% and that’s a really substantial step for a relatively small country. What makes it even more interesting is the fact Turkey was a huge net seller in 2016 as it sold in excess of 3 million ounces of gold between June and December before increasing its position again (at a rather aggressive pace). - Zerohedge


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