Russia's Bold Move: Adding Silver to Reserves to Shake Up Global Markets Ahead of BRICS Summit
October 22, 2024Russia has announced plans to add silver to its state reserves, alongside gold, platinum, and palladium, which could reshape the global precious metals market.
The Draft Federal Budget outlines an annual allocation of 51.5 billion rubles for precious metals purchases through 2027, indicating a strategic shift in resource management.
This decision comes just before the BRICS summit and amid global de-dollarization efforts, positioning Russia to benefit significantly from rising silver prices.
The Silver Academy suggests that silver could play a pivotal role in a potential shift towards a commodity-backed currency among BRICS nations.
The United States is particularly vulnerable due to its reliance on imports for 80% of its silver needs, making it susceptible to supply disruptions.
This situation highlights weaknesses in the U.S. financial system, rooted in the abandonment of the gold standard and reliance on the petrodollar.
Analyst Jon Forrest Little from The Silver Academy describes Russia's move as 'The Ultimate Squeeze,' drawing parallels to historical events that influenced global economics.
Little warns that a major revaluation of silver could disrupt current financial systems and challenge the supremacy of fiat currencies.
Historically, this move is likened to the 1973 Oil Embargo, where control over critical resources was used for geopolitical leverage.
As economic tensions rise globally, the silver market is poised for significant attention regarding Russia's strategic moves.
If other nations follow Russia's lead, a significant increase in silver prices could occur, with far-reaching implications for the global economy.
Summary based on 1 source
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Source
The Jerusalem Post • Oct 21, 2024
Russia's Silver Strategy Signals Global Economic Shift, Experts Warn