Source Pravda.Ru

US muddles with gold reserves, not conducting public audit

The US tries to convince the world, that gold prices fall, as the metal started threatening the role of dollar as a global reserve currency, William Engdahl, geopolitical analyst, strategic risk consultant, professor at Princeton University wrote for New EasternOutlook.

Gold prices have dropped to 1,099 dollars a troy ounce since 2011 when gold futures cost 1,896 dollars at the New York COMEX exchange. COMEX, which is governed by the Western banks, does everything possible, including the sale of forged bullions, to crash the prices.

At the same time, Russia and China keep building up gold mining.

Aleksey Vyazovsky, Vice-president of the Golden Mint House commented o the issue to Pravda.Ru.

"I do not share this theory that gold may become an alternative to dollar, or any other currency. We have a number of areas, which are not in the dollar zone. One of the largest places where they trade gold now is the Shanghai Stock Exchange. There is not much gold in the world, to serve the global trade. The reserve currency is of necessity in any way, either it is a dollar, or something else," the analyst said.

The US muddles with gold reserves, not conducting a public audit. The gold prices decrease has happened given the expectations of interest rate increase. "The case is that monetary base is being reduced in the US, and the prices fall not only for gold, but everything. Oil and industrial metals have also lost in value. That is, dollar costs less, the supply is being reduced, and there are expected higher interest rates and capital value," Vyazovsky explained.

Given these expectations, we can evidence the drop of prices for everything traded at the stock exchange, the expert noted. "As soon as there occurs a serious increase of interest rates, gold prices will be back to 1,200-1,300 dollars an ounce," he added.

According to Vyazovsky, Russia builds up gold mining because it has a secure buyer of Central Bank, which purchases up to 60% of gold. "Central Bank tries to diversify its reserves in such a way. As sanctions are imposed on our country, we should enlarge our share of gold," the analyst said.

Also read: Gold and uranium extraction granted to Russia in Sudan

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