Russia vs USA: Where’s the Gold Going?

The comments above & below is an edited and abridged synopsis of an article by Steve St. Angelo

Comparing the US and Russia in the current gold market, Russia is the clear winner. While the US has been liquidating its gold holdings, Russia has added a hefty 3,000,000 ounces of gold to its official reserves since January 2017.

Russia vs USA: Where’s the Gold Going? | BullionBuzzOf the estimated 106 tonnes of gold produced by Russia from January to May 2017, it added 93 tonnes to the official gold reserves versus the US, which produced 96 tonnes, with none added to its official reserves.

Basically, Russia’s official gold reserve additions this year accounted for 88% of its domestic mine supply, whereas the US continues to export all of its gold supply.

Using an estimate based on the USGS March 2017 Gold Mineral Industry Survey, the US will suffer a 26-tonne gold supply deficit for January to May 2017.

For January to May 2017, US gold mine supply is forecasted to be 94 tonnes, imports to reach 118 tonnes, while total exports are estimated to be 238 tonnes. This leaves a 26-tonne supply deficit. Data for January to March 2017 shows US mine supply of 54 tonnes, imports of 71 tonnes and total gold exports of 143 tonnes. This leaves a supply deficit of 18 tonnes for the first three months of 2017.

So the US continues to export more gold than it mines and imports. Russia is doing the opposite, and continues to add to its official gold reserves.

The US government cannot buy any gold because it continues to run a fiscal deficit, while the country suffers ongoing trade deficits. A country can only add gold if it has surpluses, and this is why the US continues to print the dollar—to continue business as usual.

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