Wow, not even half into this morning’s first cup of coffee, and we’re gobsmacked already. According to news sources, China has been selling gold to — well, you should really guess first, because you might not believe it. OK, we’ll spill the beans.
Yes, it’s Russia, China’s sometimes sworn enemy, or at least swearing-at foe on the other side of the mountains. Though in a way it kinda makes sense. There are lots of reasons why China might want to sell some gold to Russia, but then lots of reasons why they wouldn’t.
Here’s your Gold Enthusiast’s take: In the long game of strategy that China likes to play, they might simply not see Russia as a significant threat in the future, but as a relatively large pawn they might be able to turn into an ally. For use at critical times of course, such as ganging up on the US Petrodollar (which we wrote about yesterday).
In any case, just pondering the why’s and how’s of China selling gold to Russia has already made your Gold Enthusiast’s morning. You can get some details, along with some controversies in the reporting and such (What? News reports out of China might not be accurate? say it ain’t so…) in today’s featured article.