OK, the author of this article at Marketwatch really does not what he is talking about to a large extent as we see contradictory statements like this...
- You can forget claims that it’s “real” money. There’s no such thing.
and
- But there’s another way to look at gold: As the most liquid reserve in times of turmoil, or worse.
If a "liquid reserve" is not money then what is? In addition, no such thing as real money? Then what am I working for? But I digress.
The meat of the article is why is Putin (and other emerging market nations for that matter) buying gold. Here it is stated pretty clearly from the article... But you have to wonder how long emerging countries will want to hold their reserves in any currency that is controlled by someone else. Vladimir Putin clearly doesn’t want to. Gold now accounts for 9% of Russia’s reserves, and that figure is rising.
This is just another indication of hard asset accumulation.
- You can forget claims that it’s “real” money. There’s no such thing.
and
- But there’s another way to look at gold: As the most liquid reserve in times of turmoil, or worse.
If a "liquid reserve" is not money then what is? In addition, no such thing as real money? Then what am I working for? But I digress.
The meat of the article is why is Putin (and other emerging market nations for that matter) buying gold. Here it is stated pretty clearly from the article... But you have to wonder how long emerging countries will want to hold their reserves in any currency that is controlled by someone else. Vladimir Putin clearly doesn’t want to. Gold now accounts for 9% of Russia’s reserves, and that figure is rising.
This is just another indication of hard asset accumulation.
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