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Russia Makes Largest Gold Sell-Off Since 1998 Default to Fund Putin’s War Budget (united24media.com)
submitted 2 weeks ago by to c/world
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[–] 9 points 2 weeks ago (13 children)

Is my math wrong or is that not less than 3% of it? Which according to the article from 1998 to now they haid raised their gold 5 fold meaning comparing today to 1998 when they have 485% of the gold they had in 1998.

The U.S. in that time has never seemed to try to raise or lower their gold reserve so one could say they have ~100% of what they had in 1998.

I'm not so sure gold in this context shows enough overall to compare such numbers

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  • [–] 11 points 2 weeks ago* (last edited 2 weeks ago)

    Afaik countries planing for war fill their gold reserves in order to stay liquid even if their they're blocked/sanctioned by others... cause you'll always find someone willing to buy gold.

    That's also the reason China enlarging their gold reserves makes Taiwan nervous.

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  • [–] 4 points 2 weeks ago (6 children)

    Idk but I know the price of gold is way overvalued, it's 30x what it was in 2001 or so. The gold to silver ratio is the metric used throughout history, and 15 silver to one gold, or 13 by some estimates, is traditional. The ratio now, is 70/1.

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  • [–] 4 points 2 weeks ago (1 child)

    Interesting. Any idea why?

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  • [–] 3 points 2 weeks ago

    Countries are expecting to need wartime finances. The world reserve currency is in question, which puts all currencies in question. Stocks and real estate are overvalued.

    Just off the top of my head. There is a lot of instability and uncertainty. Gold is safe.

    This price means a lot of very powerful people with obscene amounts of money think the future is going to be extremely rough.

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  • [–] 1 point 2 weeks ago (2 children)

    Wonder if that's because we now have practical uses for gold across several industries.

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  • [–] 3 points 2 weeks ago (1 child)

    It could be, but I'd doubt it. We also have industrial uses for silver, and the amount of gold needed for things like electronics is relatively small. It could have some effect, but I don't think it should be this dramatic.

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  • [–] 2 points 2 weeks ago

    If practical uses drove the cost platinum and pallidium would still cost more than gold, (they did for some years around 2001,) as they are catalysts for chemical processes, and can be used like gold to handle high currents without burning up.

    Silver actually has a lower specific resistance than gold and platinum and the like, it can handle high voltages though not as much as gold and platinum.

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