I know many of my readers have personally put themselves back on the “gold standard” by buying and storing physical gold of their own. It’s a clever trick – and one I am fond of myself.
Anyone who questions the role of gold in a portfolio should note that Russia’s central bank (central banks you will recall thrive on the endless production of increasing quantities of valueless fiat currencies) have just recorded their largest one month purchase of gold. In September they purchased a whopping 1.2 million ounces, the biggest one month increase on record I note.
September’s gold grab brings the Russian gold reserves up to 37 million ounces.
That means Russia is now the seventh largest holder of gold having just overtaken the Swiss central bank.
The question we have to ask ourselves is why would a central bank (and they are not alone) start stock piling physical gold?
The Swiss vote how much gold THEIR central bank should hold.
Don’t forget that the Swiss vote on how much gold THEIR central bank should hold will take place on November 30th. Power to the people.
If the vote goes to the “Yes” campaign you can add that to your growing list of reasons why YOU should hold physical gold too. See the gold section of my website for more details.
Early polls suggest that 29% of respondents will vote to force the Swiss central bank to hold physical gold equivalent to 20% of the country’s foreign exchange reserves, with another 16% looking to follow suit, whilst 28% look as if they will say no with another 11% leaning that way. If that were to play out in the actual vote it would give the Yes campaign a 6% lead. This is a very important vote for gold and the global implications could be huge.
We will know soon enough which way this one will go.
Meanwhile, for gold bugs everywhere, I know it’s been a long wait in order to see the kind of gains we are hoping for when all this funny money blows up. But let’s be honest here, most people need time to build up enough gold reserves of their own to make a real difference when the price does fly. What do I mean by fly? Well a 200% increase in the gold price really would just be the start.