Title: China is stocking up on gold Post by: pinkflower on December 01, 2016, 07:43:23 AM I just saw this. This is old but its still relevant I think. When this kinds of topics are released more in the news, we all already have an inkling that another economic collapse will happen soon. What do you think will this do to BTC? Is it still relevant to BTC?
China To Replace Dollar System With Gold Standard http://yournewswire.com/china-to-replace-dollar-system-with-gold-standard/?utm_source=grc&utm_medium=relatedcontent Title: Re: China is stocking up on gold Post by: ArdiPrabowo on December 01, 2016, 08:39:21 AM i Think is not big effect in bitcoin price
china replace capital devisa from USD to gold because response about donald trump say not import or reduce import from china Title: Re: China is stocking up on gold Post by: Pursuer on December 01, 2016, 09:58:33 AM the economical collapse is something that is more like a hot topic and it always stays a hot topic, like a theory that never happens in reality.
but if this is true and China is really starting to stock up on gold, then it would affect gold price greatly not bitcoin. because it is increasing the demand for gold and also hyping it up at the same time. but economy collapse is another matter, and that can affect bitcoin price too. because people will start investing in other things and what else is better than bitcoin. Title: Re: China is stocking up on gold Post by: deisik on December 01, 2016, 10:55:06 AM the economical collapse is something that is more like a hot topic and it always stays a hot topic, like a theory that never happens in reality. but if this is true and China is really starting to stock up on gold, then it would affect gold price greatly not bitcoin. because it is increasing the demand for gold and also hyping it up at the same time China as well as Russia has been buying gold in massive amounts for a few years already. So it is an old news really. Why they are doing that is also straightforward enough. They are most certainly moving their reserves from pure currency oriented to mixed type reserves, where currencies such as the US dollar and Euro make only a certain percentage of the grand total. It could be said that they are trying to get away from the possible repercussions should the dollar or euro collapse or get seriously devalued... In other words, gold is giving them a safety cushion of sorts Title: Re: China is stocking up on gold Post by: chesatochi on December 01, 2016, 11:26:48 AM the economical collapse is something that is more like a hot topic and it always stays a hot topic, like a theory that never happens in reality. but if this is true and China is really starting to stock up on gold, then it would affect gold price greatly not bitcoin. because it is increasing the demand for gold and also hyping it up at the same time China as well as Russia has been buying gold in massive amounts for a few years already. So it is an old news really. Why they are doing that is also straightforward enough. They are most certainly moving their reserves from pure currency oriented to mixed type reserves, where currencies such as the US dollar and Euro make only a certain percentage of the grand total. It could be said that they are trying to get away from the possible repercussions should the dollar or euro collapse or get seriously devalued... In other words, gold is giving them a safety cushion of sorts I already read this topic over 2 years ago and I think they prepare in the case the worst situation could happen. I see it like a diversification of China and Russia in the case of the extreme devaluation like you said of the US and EURO. Title: Re: China is stocking up on gold Post by: Sithara007 on December 01, 2016, 12:02:19 PM The Chinese are wise. A huge bottleneck in gold supply is coming up, and the market prices are going to zoom up very soon. Anyway, investing in gold is much better than investing in the Chinese Yuan (which is no better than toilet paper).
Title: Re: China is stocking up on gold Post by: susila_bai on December 01, 2016, 12:19:43 PM I just saw this. This is old but its still relevant I think. When this kinds of topics are released more in the news, we all already have an inkling that another economic collapse will happen soon. What do you think will this do to BTC? Is it still relevant to BTC? China To Replace Dollar System With Gold Standard http://yournewswire.com/china-to-replace-dollar-system-with-gold-standard/?utm_source=grc&utm_medium=relatedcontent This is not new, china always does this first it went in gold stock pilling and then the gold price went up then they started to pile silver then silver rate also boomed and now i dont think they will start back gold as stocking it may be they start bitcoin stocking. Which is the latest hot coin Title: Re: China is stocking up on gold Post by: buwaytress on December 01, 2016, 01:23:19 PM The Chinese are wise. A huge bottleneck in gold supply is coming up, and the market prices are going to zoom up very soon. Anyway, investing in gold is much better than investing in the Chinese Yuan (which is no better than toilet paper). Wiser than you think... the doomsday theories about what happens when China decides to dump all their USD reserves... and now stockpiling gold. They're good at reading the future and China is always thinking 50 years ahead and not 10 or 20. That's why they're also the only ones risking everything to develop Africa before the boom happens on that continent. The Yuan is also actively devalued by the Chinese themselves. Title: Re: China is stocking up on gold Post by: veleten on December 01, 2016, 01:57:38 PM tell us something we didn't know
China,Russia,Japan have all increased their gold stocks immensely if China decides to withdraw from the Fed's treasuries,they would effectively make USD collapse together with the worlds economy but the debt pyramid cannot last forever-there are only two ways to get rid of the spiralling debt that cannot be paid(it is not supposed to paid either,it is some form of a tribute) first one is to conjure another war or some sort of a catclysm to simply erase this debt from the books and start anew second one is to slowly and carefully get rid of the US dollar as the legal tender accepted worldwide and to do that you have to present something to be its substitution,gold is one of the possible options Title: Re: China is stocking up on gold Post by: bitbunnny on December 01, 2016, 02:37:50 PM It's always interesting to see what Chinese are doing. And everything they do have the good reason. Sometimes I think they are one step ahead of the whole world. They influence the world economy a lot and not without consequences. This step with gold maybe will not influence the Bitcoin price that much but we'll see what future brings.
Title: Re: China is stocking up on gold Post by: michellee on December 01, 2016, 02:38:34 PM this will make the price of gold is increase in future, but i think its different with bitcoin as bitcoin is crypto currency and don't have a physical form and its need long journey to see bitcoin is use for the payment. the china people can see the opportunity for the good product and they will make for their investment in long term and this is why the china country is grow so fast.
Title: Re: China is stocking up on gold Post by: deisik on December 01, 2016, 02:55:46 PM tell us something we didn't know China,Russia,Japan have all increased their gold stocks immensely if China decides to withdraw from the Fed's treasuries,they would effectively make USD collapse together with the worlds economy but the debt pyramid cannot last forever-there are only two ways to get rid of the spiralling debt that cannot be paid(it is not supposed to paid either, it is some form of a tribute) It has been a sort of tribute till now. But one day (say, tomorrow) it may miraculously turn from a tribute into a real $5 trillion debt (amount of the US national debt held by foreign investors such China, Gulf states, Japan, etc) after the US loses its grip over the world. They could default on their liabilities, but what are they going to do next? They could devalue the dollar, but what will happen to their economy and populace now basically living on imported goods? Anyway, if Trump is going to build a wall around America, it shouldn't really matter first one is to conjure another war or some sort of a catclysm to simply erase this debt from the books and start anew second one is to slowly and carefully get rid of the US dollar as the legal tender accepted worldwide and to do that you have to present something to be its substitution,gold is one of the possible options Apart from a few tiny countries in Latin America and Zimbabwe, the US dollar is not legal tender anywhere in the world Title: Re: China is stocking up on gold Post by: eternalgloom on December 01, 2016, 03:01:02 PM I'm just wondering what the US response to this will be, I don't think they would make it easy for China to just switch to a gold standard instead of the Dollar.
Title: Re: China is stocking up on gold Post by: Red Fish on December 01, 2016, 03:27:11 PM I do not think, that China goverment can buy gold mines around the world so easy and start to stocking in gold. Gold mines are rare around the world and find one, which you can buy, would be very hard.
Title: Re: China is stocking up on gold Post by: coin-investor on December 01, 2016, 03:32:22 PM The Chinese are wise. A huge bottleneck in gold supply is coming up, and the market prices are going to zoom up very soon. Anyway, investing in gold is much better than investing in the Chinese Yuan (which is no better than toilet paper). I think it applies to every country,here in my country I prefer investing in Bitcoin and gold these two will always go up,whatever the economic situation in whatever country these two are the best investment in our times,one technology driven the other comes from nature good combination.. Title: Re: China is stocking up on gold Post by: bamboylee on December 01, 2016, 03:51:03 PM I think china and russia is stocking up on gold because they know America has depleted their gold reserves. When US economy crashes because of that, china will be the superpower. That will also effect bitcoin very much because people will lose faith in fiat and turn to bitcoin for refuge.
Title: Re: China is stocking up on gold Post by: error08 on December 01, 2016, 04:45:10 PM tell us something we didn't know That's right, China bought and stocks gold since long time before, they keep country wealth still inside for future usefulness and the supply of gold will limited. It will affected economics for sure if some countries possessive of so much gold, some kind of state savings. China,Russia,Japan have all increased their gold stocks immensely if China decides to withdraw from the Fed's treasuries,they would effectively make USD collapse together with the worlds economy but the debt pyramid cannot last forever-there are only two ways to get rid of the spiralling debt that cannot be paid(it is not supposed to paid either,it is some form of a tribute) first one is to conjure another war or some sort of a catclysm to simply erase this debt from the books and start anew second one is to slowly and carefully get rid of the US dollar as the legal tender accepted worldwide and to do that you have to present something to be its substitution,gold is one of the possible options Title: Re: China is stocking up on gold Post by: Vitnatin on December 01, 2016, 06:12:35 PM I think china and russia is stocking up on gold because they know America has depleted their gold reserves. When US economy crashes because of that, china will be the superpower. That will also effect bitcoin very much because people will lose faith in fiat and turn to bitcoin for refuge. I think they should stock up the bitcoin. Title: Re: China is stocking up on gold Post by: Ayers on December 01, 2016, 06:22:05 PM I do not think, that China goverment can buy gold mines around the world so easy and start to stocking in gold. Gold mines are rare around the world and find one, which you can buy, would be very hard. i think they will end up producing it in the future, because it's rare like you said and it's not convenient to buy it at this point, because it's also very centralized and i assume that buying one will not return the cost in a short term and not even in a long term Title: Re: China is stocking up on gold Post by: deisik on December 01, 2016, 07:01:05 PM I think china and russia is stocking up on gold because they know America has depleted their gold reserves. When US economy crashes because of that, china will be the superpower. That will also effect bitcoin very much because people will lose faith in fiat and turn to bitcoin for refuge. I think they should stock up the bitcoin. Their miners are already doing exactly that i think they will end up producing it in the future, because it's rare like you said and it's not convenient to buy it at this point, because it's also very centralized and i assume that buying one will not return the cost in a short term and not even in a long term I don't quite understand what you mean by saying that it is not "convenient to buy it at this point". When did any government ever care about something being inconvenient, and the Chinese one specifically? On the other hand, the price is currently low and the New York and London vaults are still full of gold. They might not find sellers willing to sell them so much gold, of course, but this is another story. Just in case, governments don't buy gold to return costs... They are buying it as a safety cushion against major currencies' possible collapse and the whimsy of governments issuing these currencies Title: Re: China is stocking up on gold Post by: bitcoinisbest on December 01, 2016, 07:12:50 PM Well if they have start buying more of gold and then chances are there that they may dump btc and then there will be sudden fall in the prices as majority is being hold by China. But for now prices are quite stable above 700$ and now rose to 750+.
Hope they keep invested in bitocin for the market to have the better rates. Title: Re: China is stocking up on gold Post by: antonioa on December 01, 2016, 07:37:46 PM yes, indeed, it is an alarming fact. China's government thus wants to preserve its assets in a secure object. Gold is a good option for this
Title: Re: China is stocking up on gold Post by: Dahhi on December 01, 2016, 09:36:51 PM China stocking up on gold has got nothing to do with bitcoin, it is fiat-related.
I think they are trying to prevent excessive devaluation of Yuan. Title: Re: China is stocking up on gold Post by: Casabrandy on December 01, 2016, 10:24:27 PM yes, indeed, it is an alarming fact. China's government thus wants to preserve its assets in a secure object. Gold is a good option for this Yeah gold has a physical value and it's price behavior is just like bitcoin that it always inflate at time passed. I think china is already doing this on the pass and nothing wrong if they decided on focusing on gold. But this will affect bitcoin price if this continue. Title: Re: China is stocking up on gold Post by: Yakamoto on December 02, 2016, 12:04:29 AM Relevant to BTC, Donald Trump has the same idea, but China has been hedging for a long time and, for the most part, this isn't anything new. We've known about this for a long time and a lot of people just ignore it, either financial analysts or economic professors.
Or they are paying attention, and not telling us about it. Good news for Bitcoin if the world does go gold standard. Title: Re: China is stocking up on gold Post by: Snorek on December 02, 2016, 12:37:13 AM China stocking up on gold has got nothing to do with bitcoin, it is fiat-related. I don't think so, Chinese government is keeping yuan very low intentionally, they don't want to have strong and expensive currency when their economy is export based.I think they are trying to prevent excessive devaluation of Yuan. But they aren't stupid and aware that any FIAT is not reliable or forever - it is very smart move to replace their stashed FIAT currency with Gold. Title: Re: China is stocking up on gold Post by: MingLee on December 02, 2016, 12:37:23 AM Well if they have start buying more of gold and then chances are there that they may dump btc and then there will be sudden fall in the prices as majority is being hold by China. But for now prices are quite stable above 700$ and now rose to 750+. It's China as a state, not primarily as individuals. If you go and look at the central bank of China and their gold holding, it is the largest it has every been and is also the largest holder in the world. They are very, very ready for any sort of economic issue and likely won't be worried about moving their money to the gold standard if necessary.Hope they keep invested in bitocin for the market to have the better rates. Bitcoin should do fine, as long as there are markets for gold using Bitcoin it will do just dandy. Title: Re: China is stocking up on gold Post by: mixan on December 02, 2016, 12:42:15 AM That is very interesting because all markets went up today including gold's value all the sudden.
Could this be the reason that they see the falling Yuen and bitcoin prices and they are just sick of the volatility of both of them that they turn to a steady monetary system? Title: Re: China is stocking up on gold Post by: CraigWrightBTC on December 02, 2016, 12:54:55 AM I just saw this. This is old but its still relevant I think. When this kinds of topics are released more in the news, we all already have an inkling that another economic collapse will happen soon. What do you think will this do to BTC? Is it still relevant to BTC? I think yes it is still relevant for bitcoins, because some people considered bitcoins as gold (include people on China) and some people considered bitcoins as money, as we know the gold is more stable than fiat money there is no inflation in it and China has good strategy replace dollar system with gold and it is same with bitcoins for today bitcoin is gold.China To Replace Dollar System With Gold Standard http://yournewswire.com/china-to-replace-dollar-system-with-gold-standard/?utm_source=grc&utm_medium=relatedcontent Title: Re: China is stocking up on gold Post by: JANGKRIK BOSS on December 02, 2016, 02:26:54 AM That is very interesting because all markets went up today including gold's value all the sudden. The China gold market is very large, so that whatever happens in China give affect the world, it's what makes the population of China taking a different types of financial investments. I am sure, bitcoin and gold also controlled by China.Could this be the reason that they see the falling Yuen and bitcoin prices and they are just sick of the volatility of both of them that they turn to a steady monetary system? Title: Re: China is stocking up on gold Post by: Gotottack on December 02, 2016, 02:35:35 AM That is very interesting because all markets went up today including gold's value all the sudden. The China gold market is very large, so that whatever happens in China give affect the world, it's what makes the population of China taking a different types of financial investments. I am sure, bitcoin and gold also controlled by China.Could this be the reason that they see the falling Yuen and bitcoin prices and they are just sick of the volatility of both of them that they turn to a steady monetary system? No one country can control gold nor Bitcoin. Any country has their own gold reserve. This is the concept of currency. The money in your pocket or wallet has a equivalent in gold in the gold reserves of your country. Do you think they just came up with a value for your paper money? No, they didn't. Your currency has an equal weight (not the metric weight) in gold. This is similar in Bitcoin. Every country can farm Bitcoin and no one country can control it either. Title: Re: China is stocking up on gold Post by: xblank on December 02, 2016, 02:44:41 AM That is very interesting because all markets went up today including gold's value all the sudden. The China gold market is very large, so that whatever happens in China give affect the world, it's what makes the population of China taking a different types of financial investments. I am sure, bitcoin and gold also controlled by China.Could this be the reason that they see the falling Yuen and bitcoin prices and they are just sick of the volatility of both of them that they turn to a steady monetary system? http://www.afr.com/technology/lisa-kangding-story-20160706-gpzx7e Title: Re: China is stocking up on gold Post by: The Sceptical Chymist on December 02, 2016, 03:04:01 AM I recall hearing many of these same stories back in 2011, when gold and silver were booming. I suspect these things are propagated by the silver bulls. This wouldn't be a bad thing for China by any means. I think more countries need to get off the US dollar standard. And gold is definitely safe in the face of Donald Trump being president. That's a risky situation.
Title: Re: China is stocking up on gold Post by: bamboylee on December 02, 2016, 03:55:02 AM Well if they have start buying more of gold and then chances are there that they may dump btc and then there will be sudden fall in the prices as majority is being hold by China. But for now prices are quite stable above 700$ and now rose to 750+. Hope they keep invested in bitocin for the market to have the better rates. It is the chinese government that is stocking up gold not the individuals. I think the Chinese government is not yet involve in bitcoin or any cryptocurrency. Title: Re: China is stocking up on gold Post by: kratarzu on December 02, 2016, 04:09:46 AM America wants to start boycot China, China secures its money by turning it into gold. Just a safety system. Even though America still owns a fucking huge amount of money to china.
Title: Re: China is stocking up on gold Post by: veleten on December 02, 2016, 05:51:45 AM Apart from a few tiny countries in Latin America and Zimbabwe, the US dollar is not legal tender anywhere in the world maybe I didn't put it correctly, USD is not accepted as legal tender, i.e. you are most likely will not get served if you come to a,say,Spanish or Italian or Norwegian shop and try to pay with dollar bills but what I meant was the current global domination of the US dollar as an internationally accepted currency: mind you,all and every trade countries make are done in USD,NOT IN THEIR OWN CURRENCIES,there is a net of Federal Reserves banks in EVERY country of the world (its a completely different story,though)they make sure that countries do not print more money than they have dollars in paper or computer form take for example gold fixing: https://en.wikipedia.org/wiki/Gold_fixing or oil futures contracts https://en.wikipedia.org/wiki/Futures_contract or basically any big exchange-all of them work with USD and trade in USD only,so to buy gold,oil,wood etc. you MUST convert your currency into USD thus supporting its gegemony as the most "stable" and "universally accepted" unfortunately,our planet cannot sustain a country that with less than 5% total world's population consumes around 40%world's produce and generates 50% of the worlds garbage (you can google and find the stats yourself if you want) the problem is that there is too much of a dependance,dollar is just too big to fall as it would make the global economy collapse as well this is why China,Russia,Brasil and India have formed the so called BRICs and are trying to establish their own IMF structure and to trade using yuan,roubles or rhupees D.Trunps election is a step towards the global processes,he was appointed to make transition less painful for every party involved hopefully without starting a war Title: Re: China is stocking up on gold Post by: Kakmakr on December 02, 2016, 06:32:19 AM I'm just wondering what the US response to this will be, I don't think they would make it easy for China to just switch to a gold standard instead of the Dollar. How are they going to stop them? China is being preemptive in response to observations that the USA economy are on a downward spiral. The USA are swimming in huge debt, and they will never recover from that within this century. The Chinese see gold as the safe haven when the shit hits the fan and I do not blame them. The thing is, gold is not performing that well, if you are looking at it over a 10 year period. https://www.kitco.com/charts/popup/au3650nyb.html Title: Re: China is stocking up on gold Post by: pinkflower on December 02, 2016, 07:29:40 AM the economical collapse is something that is more like a hot topic and it always stays a hot topic, like a theory that never happens in reality. but if this is true and China is really starting to stock up on gold, then it would affect gold price greatly not bitcoin. because it is increasing the demand for gold and also hyping it up at the same time China as well as Russia has been buying gold in massive amounts for a few years already. So it is an old news really. Why they are doing that is also straightforward enough. They are most certainly moving their reserves from pure currency oriented to mixed type reserves, where currencies such as the US dollar and Euro make only a certain percentage of the grand total. It could be said that they are trying to get away from the possible repercussions should the dollar or euro collapse or get seriously devalued... In other words, gold is giving them a safety cushion of sorts Do you think Russia and China are doing this because they are expecting an economic crisis on the horizon? This might sound paranoid but maybe it's possible that they will both try to cause the crisis in order to profit from their gold investment. Title: Re: China is stocking up on gold Post by: deisik on December 02, 2016, 07:39:37 AM the economical collapse is something that is more like a hot topic and it always stays a hot topic, like a theory that never happens in reality. but if this is true and China is really starting to stock up on gold, then it would affect gold price greatly not bitcoin. because it is increasing the demand for gold and also hyping it up at the same time China as well as Russia has been buying gold in massive amounts for a few years already. So it is an old news really. Why they are doing that is also straightforward enough. They are most certainly moving their reserves from pure currency oriented to mixed type reserves, where currencies such as the US dollar and Euro make only a certain percentage of the grand total. It could be said that they are trying to get away from the possible repercussions should the dollar or euro collapse or get seriously devalued... In other words, gold is giving them a safety cushion of sorts Do you think Russia and China are doing this because they are expecting an economic crisis in the horizon? Maybe it's possible that they will both try to cause the crisis in order to profit from their gold investment. It might well be the case Personally, though, I'm more inclined to think that they are piling up gold in their reserves for the purpose of substituting the paper currencies such as Euro and the US dollar. With the current political tensions, first arising around Russia and now around China (Trump accusing them of stealing American jobs and all such things), it seems to be the best solution. To get a better understanding of the situation, think about the KSA sovereign wealth funds held in the US which are now made vulnerable to lawsuits thanks to Congress allowing American citizens to sue Saudi Arabia directly for 9/11 Title: Re: China is stocking up on gold Post by: Shiroslullaby on December 02, 2016, 07:45:08 AM Chinas currency is so manipulated, I'm not sure anyone knows what it is actually worth anymore.
If I had a lot of Yuan, I would definitely diversify my holdings into foreign currency, gold, bitcoin, etc, just in case some policy by the Chinese government, the new US president, or anyone else changed the value of the currency into the negative. I doubt Trump can really do much to negotiate a better trade deal with China, but a policy that would change the price of Yuan even a percent or two is a huge loss for someone with hundreds of millions/ billions of dollars. Title: Re: China is stocking up on gold Post by: Sithara007 on December 02, 2016, 07:54:24 AM Do you think Russia and China are doing this because they are expecting an economic crisis on the horizon? This might sound paranoid but maybe it's possible that they will both try to cause the crisis in order to profit from their gold investment. Perhaps they are doing this to insulate themselves from any crash in the value of the US Dollar. Gold is one of the few assets which are protected against currency devaluation. The other assets such as equities and bonds lose their value along with the currency. Title: Re: China is stocking up on gold Post by: sportis on December 02, 2016, 08:14:02 AM The price of gold has opposite direction with respect to the price of dollars. A strong dollar keeps down the price of gold. A weaker US dollar is likely to drive the price of gold higher. It is well known that Chinese banks had more than 4 trillion of USA dept. It is not strange imo that they are trying to change dollars and euros as well with gold.
Title: Re: China is stocking up on gold Post by: Multipulty on December 02, 2016, 08:26:37 AM chain is stocking up Gold, may be buying gold to diversify its foreign reserve holdings away from its heavy exposure to the U.S. dollar, which accounts for the vast majority of its foreign reserves. China holds U.S. treasury bonds worth $1.3 trillion, Bloomberg reported earlier this week, as new record.
Title: Re: China is stocking up on gold Post by: davis196 on December 02, 2016, 08:35:01 AM I just saw this. This is old but its still relevant I think. When this kinds of topics are released more in the news, we all already have an inkling that another economic collapse will happen soon. What do you think will this do to BTC? Is it still relevant to BTC? China To Replace Dollar System With Gold Standard http://yournewswire.com/china-to-replace-dollar-system-with-gold-standard/?utm_source=grc&utm_medium=relatedcontent If China replaces the dollar system with gold standart their export to USA will become more expensive. I don`t know why they will want to do this. This might have some influence over bitcoin and btc price. Title: Re: China is stocking up on gold Post by: X-ray on December 02, 2016, 08:36:03 AM America wants to start boycot China, China secures its money by turning it into gold. Just a safety system. Even though America still owns a fucking huge amount of money to china. Yeah trump's effect as usual. turning to gold is not wrong though and they will not counting only on dollar. america will indeed get a big impact by it. but, both countries will more likely to broke off the diplomatic relations if these thing keeping up and continuedTitle: Re: China is stocking up on gold Post by: deisik on December 02, 2016, 08:41:43 AM Do you think Russia and China are doing this because they are expecting an economic crisis on the horizon? This might sound paranoid but maybe it's possible that they will both try to cause the crisis in order to profit from their gold investment. Perhaps they are doing this to insulate themselves from any crash in the value of the US Dollar. Gold is one of the few assets which are protected against currency devaluation. The other assets such as equities and bonds lose their value along with the currency. The reserves in a foreign currency usually tend to roughly match the national debt of the state in that currency. In this way, the crash in the value of the US Dollar would not only devalue these reserves but also devalue the debt itself. So it is effectively six of one and half a dozen of the other. On the other hand, if the national debt tends to diminish over time (as is the case with Russia), it doesn't make much sense to keep the reserves of the currency any longer... And buying gold with them looks a better idea on the whole |