USA is fighting inflation while Russia is buying gold

Daily Reckoning: Russia is buying gold right before Washington's eyes

Russia is actively acquiring gold, while the United States is focusing on fighting inflation, former CIA adviser and now financial expert James Rickards believes.

The US authorities have been fighting inflation during the recent months. According to officials, the US government is succeeding at this point. However, James Rickards believes that the dollar is still in the process of rapid devaluation.

The process is developing against the backdrop of Russia and China manipulating their gold reserves, the expert said in an article published on The Daily Reckoning.

Rickards notes that inflation has not vanished. On the contrary — it may even increase due to rising oil prices and geopolitical issues.

The expert predicts a significant depreciation of the dollar over the next 20 years. In his opinion, gold is much more attractive, as it is not subject to inflation nor does it respond to geopolitical risks. Gold is still the most reliable asset and governments of different countries are aware of that.

Russia, China and a number of other countries have consistently increased their gold reserves since 2008. According to the columnist, Russia and China will continue to increase their gold reserves as this is the best way to protect their finances from influences of the United States and its allies.

This plan works well because gold cannot be blocked or traced, unlike the dollar.

Today, the price of gold amounts to about $2,033 per ounce and it is expected to grow. According to the expert, investing in gold now guarantees the safety of the invested funds. The American dollar is no longer capable of guaranteeing the same.

It is worth noting that James Rickards is a supporter of the gold standard idea. Therefore, he tries to emphasise the importance of gold in all his materials.

He is not alone here. There are many American economists in the United States, who believe that the role of gold in the country's financial system should be given more attention. At the same time, one can not say that the supporters of this idea have influence on the economic policy of the American authorities.

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Author`s name Oleg Artyukov
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Editor Dmitry Sudakov
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