Fox Business Channel - Peter Schiff: China, Russia Buying Gold Because 'They Can Read the Writing on the Wall'

Article by Jonathan Garber in Fox Business Channel

China and Russia have been stockpiling gold, helping to propel the precious metal to its highest level in more than six years.

The People’s Bank of China has added about 100 tons of gold to its reserves since December. Russia has bought 106 tons of the precious metal this year.

“They can read the writing on the wall,” Euro Pacific Capital CEO Peter Schiff told FOX Business, adding that the two countries are “preparing for the world where the dollar is no longer the reserve currency.”

China’s gold reserves now stand at more than 1,950 tons, Bloomberg says. Russia has more than 2,200 tons, and has the fifth-largest stockpile by country.

Beijing’s gold purchases, which amount to 100 tons since December, come as it has been less aggressively buying Treasurys amid the U.S-China trade war. In June, China fell behind Japan as the world’s largest holder of U.S. debt, a title it had held since May 2017.

Meanwhile, Russia has more than quadrupled its reserves over the past decade amid its promise to break its reliance on the U.S. dollar. Russia’s central bank has bought 106 tons so far this year, according to Bloomberg.

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