Breaking news : Russian Government takes refuge in Physical Gold

ArticleChange of moneyJune 21, 2018 - 6:09:20 AM

Russia is investing massively in gold after getting rid of its US Treasury bonds; a South Korean exchange of crypto-currencies has been hacked for 30 million dollars; the EU taxes US imports at 25%.

Russia invests Massively in Gold after getting rid of its American Treasury bonds.

Vladimir Putin's government recently sold 47.4 billion dollars of US debt, choosing to turn to gold rather than support the greenback.

The Russian central bank continues to accumulate and increase its gold reserves, which today are valued at over 62 million ounces. This represents about $80.5 billion and makes Russia the fifth largest gold holder in the world.

With the current geopolitical stakes as high as uncertain, the Russian government is preparing for the worst and sees in physical gold a safe and reliable way to protect its economy from American sanctions, according to MINING

US Treasury holdings in China also fell by $5.8 billion. "China could do the same if the trade war continues," said Vladimir Miklashevsky, senior economist at Danske Bank”.

It is because of its historical status as a store of value that Russia has chosen yellow metal as the guarantor of its country's economic health. Many governments, including Germany, are already beginning to repatriate their gold reserves from the United States.

South Korean Crypto-Money Exchange has been hacked for 30 Million Dollars

The Bithumb crypto-currency exchange said it was temporarily suspending its deposit and withdrawal services after lost about $30 million worth of virtual currency because of hackers.

South Korea is a major hub of the cryptocurrency trade and Bithumb is one of the largest virtual currency exchanges in the country. Recently, another smaller South Korean exchange, Coinrail, has also been hacked.

The reliability and confidence that investors have in crypto has been heavily affected by this security failure. The virtual currencies already contested for their high volatility and by the threat of American regulators, are beginning to seriously worry investors.

The Bithumb Exchange did not specify when it would resume its deposit and withdrawal services, according to CNBC.

EU taxes US imports at 25%

The European Union will applyimport duties of 25% on a series of American products.

To follow up on the sanctions imposed by Washington on steel and aluminium, the EU has decided to faced with the protectionism instituted by the Trump government, according to CNBC

.

The Commission recently passed legislation to implement tariffs on €2.8 billion ($3.2 billion) of US goods, including bourbons and motorcycles.

Although the amount of these sanctions is relatively modest, the symbol it represents is not. Through these new tariffs, the EU is warning the United States that Europe is ready to react and will not remain unmoved by such sanctions.

Source: BUNKER GOLD&SILVER

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