🔴 Finally, Putin is selling gold to finance the war.
Russia has about 2.3 thousand tonnes of gold, the fifth-largest official gold reserve in the world.
And Russia has sold about 232 tonnes of gold since the beginning of the war in February 2022.
Russian foreign reserve assets were frozen by the USA.
Not only that, Russian foreign-held assets in Europe were also confiscated by the EU, worth about $300 billion.
Russia had no access to any other capital market, so no one was buying Russian sovereign bonds that Putin could use to finance the war.
Every source of capital was shut down for Putin.
No one wanted Russian rubles or Russian bonds, meaning both were failing as money in the global market as they could buy less and less with every passing day.
But money is what everyone desires to have, everyone wants it from every corner of the world, no matter if he or she is your enemy or friend.
The demand for money will always be high.
The liquidity of money will always be almost 100%, meaning its salability remains extremely high at any time and in any place, unlike fiat bonds where prices get discounted or suffer haircuts due to credit quality or inflation expectations.
And here comes gold, the king of currency.
Everyone wants gold, it doesn't matter whether he is your friend or enemy.
The liquidity of gold is extremely high in every corner of the world, and everyone is ready to buy it at a competitive price.
Gold can't be banned, can't be cancelled, because you can't know whether it is Russian gold or Chinese gold; gold is defined by its chemistry.
