Gold standard strategy and the collapse of dollar

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News Date: July 16, 2020

The dollar is no longer pegged to gold, but it is still the world's reserve currency. Over 60% of the foreign bank reserves are currently held in US Dollars.
There have been efforts by numerous countries (led by China and Russia) to dethrone the US Dollar as the world's reserve currency. China has been reducing its exposure to the Dollar for a long time, and both China, as well as Russia, have been stocking up on gold in recent times.
Central banks added 650 tons to their reserves in 2019, the second highest shift in 50 years, after the 656 tons added in 2018. Before the 2007-09 financial crisis, central banks were net sellers of gold worldwide for decades. Leading the recent spree has been China, Russia, Turkey, Kazakhstan and Uzbekistan.
China can escape the fate of a dollar collapse by tying the yuan to gold. There is little doubt she has access to sufficient gold. Currently, her interest is to preserve the dollar, not destroy it, because it is the principal means of Chinese foreign interests being secured.
Sources: www.fxstreet.com, uk.news.yahoo.com, seekingalpha.com

Gold is the Real Safe Haven Asset

Gold is finally outperforming the way one would imagine. It's not always about the absolute performance as it is about the relative performance.
As Bitcoin surged from March 2020 through 2021, the market was convinced that Bitcoin was the "new" digital gold, the new store of value asset.
As Bitcoin surged to new highs at each passing day, this became a self-fulfilling prophecy.
Gold was seen as the stepchild, given no attention whatsoever as traders chased the greed and FOMO 100%+ returns in crypto assets.
Year to date, Gold is now up 6% vs. Bitcoin down 25%.
Source: thestreet.com

Trump is enacting NESARA sections by executive orders

Trump notified his staff to continue working on an Executive Order with respect to Payroll Tax Cut, Eviction Protections, Unemployment Extensions, and Student Loan Repayment Options.
If Democrats will not make a deal, President Donald Trump will pursue executive action in order to extend economic relief for the American people.
Payroll Tax Cut
Eviction Protections
Unemployment Extensions
Student Loan Repayment Options
Economic relief for American people
Sources:twitter.com/realDonaldTrump, twitter.com/WhiteHouse

Zimbabwe will introduce gold coins

The Monetary Policy Committee resolved to introduce gold coins into the market as an instrument that will enable investors to store value.
The gold coins will be minted by Fidelity Gold Refineries (Private) Limited and will be sold to the public through normal banking channels.
Also, the Reserve Bank of Zimbabwe (RBZ), announced the review of interest rates and statutory reserves.
The measures come to combat the depreciation of the local currency, soaring inflation, and the threat of economic recession.
Sources: www.rbz.co.zw

US Mint increases prices on silver products

The United States Mint recently adopted a new strategy for pricing products in its silver numismatic products portfolio. Prices for products containing silver will change EFFECTIVE October 13, 2020-applicable to silver products already on sale/those yet to be released.
In order for the United States Mint to cover rising costs, meet its fiduciary responsibility to operate at no net cost to taxpayers, and return money to the Treasury General Fund, re-setting silver prices is necessary.
The Mints goal, as a financially responsible Federal agency, is to always provide the best quality numismatic products while maintaining fair prices.
The first objective is to ensure that the numismatic portfolio (all product lines together) be self-sufficient and cover all associated costs. The new silver prices reflect a sound business decision aimed at meeting these obligations.
(No tax dollars are used to fund numismatic operations.) The United States Mint will continue to look for operations optimization and cost reduction efforts to deliver superior quality numismatic products at a fair price.
Sources:www.federalregister.gov, twitter.com, www.coinworld.com

BRICS plans an alternative to the IMF

Russia has urged its BRICS partners to establish an alternative to the International Monetary Fund (IMF) to counteract political pressure from Western nations. This proposal comes as BRICS finance ministers and central bank officials gather in Moscow.
Russian Finance Minister Anton Siluanov, hosting the meeting, emphasized that the global financial system is dominated by Western countries.
He called for the group, which represents 37% of the global economy, to create a financial institution independent of Western control.
"The IMF and the World Bank are not performing their roles. They are not working in the interests of BRICS countries;
It is necessary to form new conditions or even new institutions, similar to the Bretton Woods institutions, but within the framework of our community, within the framework of BRICS," Siluanov said on the first day of the meeting.