Russia is rumored to be selling its gold 🤔. But is that really true? So will gold start to drop? 🧐.

The likelihood is no, because Russia is selling it privately to China as a currency for trade. This is due to the limited supply of Russian money and the sanctions imposed by the US. China itself does not want to take the risk of acquiring too many Rubles.

This indicates several things:

1. The possibility that it is for BRICKS. It may have started as a loan, but Russia understands that gold continues to rise. So the shipment to China is not as a sale but as collateral for a purchase loan. However, it complicates things if they have to ship tons of gold. Perhaps later it will also be allocated as an accumulation for BRICKS reserves. According to its target, by 2030 BRICKS will be backed by 40% of the world's gold.

2. Preparation for an escalating trade war. When a war occurs, no one wants paper money, and gold is the insurance. Russia is moving it to China not because there are no other places to sell. But Russia is giving it to China because it is the safest place for it to protect its national wealth. Singapore, Switzerland, and Dubai cannot be used as a refuge because all of these are US sectors.

3. The De-Dollarization Doctrine, meaning the collapse of the dollar's trust value is also the collapse of FIAT currencies that are not backed by gold. The world is being reminded of how the US uses its dollar to freeze Russian dollar assets. Other countries will think, if Russia can be frozen, why can't my country be? The effect will be that countries and retailers will fomo to take gold as part of their protective value. The impact is that gold rises, so Russia can sell less of it for trade needs.

From these 3 points, it shows that the current trade war is still not that significant. The likelihood of an explosion in the trade war is very high. If that happens, countries that have a lot of gold and logistics will be able to survive until tensions decrease again $PAXG