SKYROCKETING RACE TO GOLD After TRUMP Tariffs. China, Russia Buying Boom. BRICS Considers Gold Reserve Currency. Germany to Withdraw Its Ingots from the US
The Gold Rush explained by Bank Expert
by Carlo Domenico Cristofori
All posts in Italian linked below can be read in English thanks to machine translation available clicking on the flags
«The gold rush does not seem to have any brakes in these first months of 2025 and in recent weeks the yellow metal has updated its historical highs several times. A rally with few precedents. Prices have easily surpassed the “psychological” barrier of 3,000 dollars/ounce and reached a new historical high of 3,057.21 dollars on March 20. The price rally has lasted, de facto, since the end of 2023. The accumulation of global geopolitical uncertainties has started to make investors look at gold, which has been the safe haven asset par excellence in periods of instability since the dawn of time. The war in Ukraine, tensions in the Middle East and the Red Sea crisis have all contributed to creating a climate of uncertainty that has driven demand».
This is how the article published last March 21 on the website of Banca Generali, leader in the Italian branch of insurance and protected investments, by Luca Longhi, Head of Total Return Portfolio of this financial institution, begins.
«This significant increase is the result of a combination of multiple macroeconomic and political factors, which continue to support the demand for gold as a safe haven. The monetary policies of the Federal Reserve, geopolitical uncertainties and global supply and demand dynamics specific to gold are all among the main drivers of this rally. In recent months, this scenario of global tensions has been joined by “aggressive trade policies, such as the threat of customs tariffs from the Trump administration”, which together with the expected cuts in public spending in the US and in general fears of a slowdown in US economic growth “have amplified global economic uncertainty, further driving demand for the precious metal» (link among sources).
This is what the expert explains, thus supporting the invitation to buy gold launched by the director of Gospa News, Fabio Giuseppe Carlo Carisio, on the day in which the American president gave the go-ahead to the “US liberation” by applying import taxes on foreign goods ranging from 20% for the EU and 34% for China up to 49% for Cambodia.
Buying Ingots in Response to Trump’s Duties
We won’t delve into overly technical explanations, but we’ll just summarize how the gold rush that began in 2023 is due to both global geopolitical instability and the precarious security of new digital cryptocurrencies that have sprung up like mushrooms, including Trump’s own recently, and cryptocurrencies still in the testing phase such as UNICOIN…
But the White House’s latest action could trigger the acceleration of the creation of a BRICS cryptocurrency based on guarantees of gold reserves, given that the countries of the alliance led by China and Russia have exponentially increased their purchases of the precious metal in recent decades.
However, the dizzying gold rush has literally emptied the banks of these two Asian countries due to the assault of savers and investors. But Beijing and Moscow remain the capitals of the largest gold producing countries (378.2 and 321.8 tons respectively in 2023, source World Gold Council)
This enormous financial phenomenon finds very little emphasis even in specialized newspapers and is almost totally obscured by the mainstream media which, being complicit with speculative investment funds on Big Tech, the Arms Lobby and Big Pharma and on derivatives often guaranteed by nothing, would see savers taking refuge in purchases and investments in gold as the largest countries in the world are doing in an attempt to free themselves from the monopoly of the dollar which is effectively supported by a currency at risk of default due to the enormous American public debt amounting to 28.3 thousand billion dollars (ISPI data 7 February 2025)
Since Washington holds one of the most powerful nuclear arsenals in the world, no country will ever be able to try to “seize” the gold bars stored in Fort Knox or government assets, as the TROIKA did (the creditors’ clan composed of the EU Commission, ECB and IMF) to impose a suffocating and punitive social reform on Greece in 2012, which was exposed for “only” 160 billion euros (or about 175 billion dollars).
Today we limit ourselves to photographing what has happened in recent months and what is about to happen in the next few months starting from a synoptic summary
- after the launch of the duties, Germany is evaluating the withdrawal of the national gold reserve from the American vault in which it is kept in February 2025, in response to the increase in US duties on metals, China made the fourth consecutive massive monthly purchase of gold
- in China and Russia the availability of gold bars for sale is running out due to the high demand of investors/saver-holders
- The Russian hunt to protect savings pushes gold purchases to record levels
- in October 2024 the BRICS economic alliance (Brazil, Russia, India, China and South Africa and other new partners) discussed the hypothesis of a single currency guaranteed in gold
For brevity and convenience we publish the extracts of financial articles published on these topics by newspapers, press agencies or specialized magazines.
TELEGRAPH – Germany considers withdrawing 1,200-ton gold stockpile from US in riposte to Trump
Germany is considering withdrawing a large part of its gold reserves from a New York vault in response to US President Donald Trump’s aggressive trade policies, the British newspaper The Telegraph reported, citing sources in German political circles.
We are talking about 1,200 tons of gold that have been stored for decades in the underground vaults of the US Federal Reserve in Manhattan. The estimated value of this reserve is around 113 billion euros, which, converted into rubles, exceeds 10.5 trillion. The decision to possibly withdraw the gold comes at a time when Berlin is increasingly doubtful about Washington’s reliability as a partner in the context of the escalating trade conflict.
According to the publication, the initiative comes from representatives of the Christian Democratic Union (CDU), which is expected to lead the new German government after the February 2025 elections. Some leading politicians of the party, including former minister Marco Wanderwitz and MEP Markus Ferber, have expressed concern that the United States under Trump is no longer a stable ally. Wanderwitz, who previously spoke out in favor of regular checks of German gold in New York, now supports the idea of its complete return to Germany. Ferber, in turn, insists on the need for personal checks by representatives of the Bundesbank to ensure the safety of the reserves.
REUTERS – China’s central bank ups gold reserves for fourth straight month in February
China’s gold reserves rose to 73.61 million fine troy ounces at the end of February from 73.45 million at the end of January, as the central bank kept buying the precious metal for a fourth straight month.
China’s gold reserves were valued at $208.64 billion at the end of last month, up from $206.53 billion at the end of January, central bank data showed on Friday.
“The PBOC’s purchases are an important factor underpinning gold, so a continuation of its buying in February could help to build further strength behind the gold price,” said Frank Watson, market analyst at Kinesis Money.
KITCO – BRICS banks bleeding gold bars: China and Russia face runaway gold demand
Chinese banks are running out of gold, while Russia’s commercial and sovereign reserves are rapidly being depleted as the two BRICS nations face sky-high domestic demand even as prices set new records.
According to local news agency Yicai, the app of Industrial and Commercial Bank of China shows 5, 20, 50, 100, and 200-gram gold bars are out of stock, with only the 10-gram option showing limited availability.
The China Construction Bank app shows that only the 50 and 100-gram investment gold bars are available, while the apps of Postal Savings Bank of China and Bank of China show all gold bars are in preorder status, meaning none are currently available.
Fellow BRICS power Russia is also seeing dwindling gold stocks at both the central bank and commercial bank levels. Gold reserves declined by 46.4 percent in 2024, representing a decrease of over 33 metric tonnes, according to a report from Russian news outlet RBC citing data from Russia’s Central Bank.
The Central Bank said Russia’s gold reserves declined 23.6 percent in monetary terms last year, but in physical terms, the drop was 46.4 percent, the biggest slump since the peak of the COVID pandemic in 2020.
MINING – Russians’ hunt to shield savings pushes gold purchases to record
Russians bought a record amount of gold last year as they sought to protect their savings amid sanctions,
obtaining the equivalent of about a fourth of the country’s annual output.
Consumers purchased 75.6 metric tons (2.7 million ounces) of the yellow metal in bullion, coins and jewelery in 2024, the fifth biggest figure among all nations, according to World Gold Council data published Wednesday. That’s an increase of 6% on the previous year and more than 60% since President Vladimir Putin ordered his troops into Ukraine almost three years ago.
Russia is the world’s second-biggest gold producer, mining over 300 tons of the precious metal a year.
Retail gold demand shifted upward after the Kremlin’s invasion of Ukraine as Russians started to find alternative ways of securing their savings instead of traditional investments in dollars or euros.
CMI-GOLD-SILVER – BRICS and the Possible Affect on Gold Values
From October 22 to 24, 2024, BRICS held its annual summit in Kazan, Russia. Among other topics, the group was expected to discuss the potential creation of a currency that could significantly affect the U.S. dollar and the value of gold.
UN Reform, Conflicts, Terrorism, Sanctions: Key provisions of BRICS Kazan Summit Declaration
To understand how a BRICS gold-backed currency could affect your wallet and the world, it’s important to understand what BRICS is and how its currency could work. Currently, the creation of a BRICS currency is still hypothetical. Still, it’s a good idea to be aware of what implications the currency could have on the gold market.
Although details of a BRICS currency are up in the air, one possibility is that the new currency could be backed by gold. It’s unlikely that these countries would mint gold coins; instead, it’s likely that the BRICS gold-backed currency will be digital—denominated in gold and backed by the countries’ reserves of the precious metal (as Venezuela tried to do – ed.).
Currently, the central banks of six BRICS countries — Brazil, Russia, India, China, South Africa, and Egypt — have gold reserves. China, India, and Russia have among the top 10 central bank gold holdings in the world.
OMFIF – Gold-backed digital currency could be a game-changer for Brics
The shifting dynamics of global trade and finance have intensified the search for a stable, universally accepted unit of account for international settlements. Geopolitical tensions, leading to results such as Russia’s exclusion from the Swift payment system, have accelerated efforts to find alternatives to the dollar.
The Brics nations are exploring the creation of a common currency that would be pegged partly to gold and partly to a basket of their own currencies. US President-elect Donald Trump has threatened 100% tariffs on Brics nations if they pursue a currency that challenges the dollar’s dominance.
New Cold War in South Asia as the BRICS Rise: US Sanctions and Regime Change with Woke Protests
The Brics bloc wields undeniable economic power, accounting for roughly 40% of the world population and more than 30% of global gross domestic product – slightly ahead of the G7 in economic output. Despite this, their currencies remain underrepresented in global trade, with the dollar dominating foreign exchange transactions.
Yet intra-Brics trade accounted for 37% of their total transactions in 2022 – up by 56% since 2017 – underscoring the bloc’s determination to strengthen financial independence. For the Brics group, a gold-backed digital currency could make a big difference. Lower transaction costs and reduced exchange rate volatility are among the tangible benefits.
Some elements of this vision are in place. As of mid-2024, Brics nations collectively held 5,700 tonnes of gold, representing 16% of global reserves. Over the past two decades, these reserves have grown threefold, reflecting an effort to reduce dependence on the dollar and bolster their own nations’ financial stability. But the balance of gold power is still skewed heavily in favour of the G7 countries, which hold a combined 17,500 tonnes, or 49% of global reserves.
MAIN SOURCES
ITALIAN SOURCES HERE ON GOSPA NEWS IT
TELEGRAPH – Germany considers withdrawing 1,200-ton gold stockpile from US in riposte to Trump
REUTERS – China’s central bank ups gold reserves for fourth straight month in February
KITCO – BRICS banks bleeding gold bars: China and Russia face runaway gold demand
MINING – Russians’ hunt to shield savings pushes gold purchases to record
CMI-GOLD-SILVER – BRICS and the Possible Affect on Gold Values
OMFIF – Gold-backed digital currency could be a game-changer for Brics
How quickly people forget the Irish Potato Famine, there was plenty to eat, just not potatoes, all that gold will be almost worthless, when they turn off the food supply just as they’ve done to the US egg supply, this they’ve already promised.