In the face of everything that is going on during this insane election
cycle, it is easy to forget that there are forces operating behind the
scenes, regardless of what the news cycle is reporting on.
The elections, which are to showcase the first debate on Monday between
Donald Trump and Hillary Clinton and is speculated to be the most-watched
election event in U.S. history, is important and captivating indeed, but
still, the world continues on, no matter what the results of that night
bring.
Two such countries that are not waiting to see who the next President is
are Russia and China, both of which are continuing to prepare themselves for
the day when the U.S. dollar is supplanted and no longer the reserve currency
of the world. This day, as many of our readers are well aware of, is
inevitable.
This fact is not lost on the budding partnership of Russia and China, who
continue to accumulate gold at a feverish pace. Russia continued to add to
their reserves in the month of August, in which they added an additional
21.77 tonnes of the yellow metal, bringing their total gold reserves to
49.1 million ounces!
In addition to this, China has also continued to move a portion of their
massive fiat reserves into the more tangible form of money, gold bullion.
They are continuing to accumulate gold, knowing that they are the most likely
successor to the US dollar, and have the highest probability of being crowned
with the "reserve currency" status.
When that day will come is anyone's best guess, but what is no secret is
the fact that China is set to rock the precious metals markets in the
immediate future. By the end
of this month , they are expected to announce an updated estimate of
their gold holdings, something that many in the financial world believe is
long overdue.
The reasoning for them finally tipping their hand and showing their cards
is due to the fact that they are strongly being entertained to become a key
member of the highly elite global banking currency, the SDR, and this is one
of the stipulations in regards to their acceptance.
The SDR is what some have called the "king" of fiat money and is
a powerful currency in global settlements. This is perhaps just one more step
for China in their path towards becoming the official reserve currency of the
world.
Let us just hope that they are accumulating their vast amounts of precious
metals with the vision of one day ushering in a return to the gold standard,
or at least some form of it, in which money once again regains some of its
former honesty and is truly "as good as gold".
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Nathan McDonald is a libertarian, entrepreneur and precious metals
enthusiast. He has always taken a keen interest in free markets and
economics since an early age, which naturally led him to become a true
believer in precious metals and all that they stand for.
Nathan served eight years in the Royal Canadian Navy as an
electronics technician, seeing the true state of the world, before starting
his first successful business. He has since gone on to create a number of
businesses, all of which are still in operation and growing.
In addition to this, Nathan runs a network of successful precious
metals blogs, and a growing newsletter that has attracted readers from all
around the world.
He is a regular and highlighted writer for the highly respected
Sprott Money Blog, which covers world events, geopolitics and of course
precious metals.
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The views and opinions expressed in this material are those of the author
as of the publication date, are subject to change and may not necessarily
reflect the opinions of Sprott Money Ltd. Sprott Money does not guarantee the
accuracy, completeness, timeliness and reliability of the information or any
results from its use.
