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Coming disaster. Why do countries buy gold?

UNITED STATES (OBSERVATORY) –┬áIncreasingly, experts warn of a future catastrophe in the world of economics. Uncontrolled money printing, trade wars and new tariffs, rising interest rates and declining retail trade volumes – all this indicates that the irreparable will soon happen, analysts say.

Large banks and governments, they believe, are well aware that something terrible is coming, so they are preparing for a catastrophe, accumulating “real money” reserves before the crisis, the portal writes.

According to Keith Newmeier, the head of the world’s largest silver producer First Majestic Silver and head of First Mining Gold, cartels continue to manipulate precious metals prices, filling their stores with gold and silver.

He notes that investments in gold will justify themselves in any situation on the market.

The problem is that governments are printing too much money, not secured by gold, and it is unlikely to change in the near future.

Newmeier also believes that gold prices will rise.

In his opinion, in the near future we will witness huge changes, since the states will have to do something with their external debts, which in recent years have reached record values.

That is why the governments of many countries, including Russia and China, are constantly replenishing their gold reserves. According to the expert, they know that in the coming years there will be a disaster.

This graph shows how the level of gold reserves in countries that are currently considered leaders in terms of official reserves is changing.

Below is the more detailed data for the end of 2017:

A country Official gold reserves
USA 8,133.5 tons
Germany 3,373.6 tons
Italy 2 451.8 tons
France 2436 tons
China 1842.6 tons
Russia 1838.8 tons
Switzerland 1040 tons
Japan 765.2 tons
Netherlands 612.5 tons
Turkey 564.8 tons

Neumeier also explains that not only monetary factors, but also supply issues, such as production, are important, especially when it comes to silver reserves, as in recent years it has declined significantly.

All these prerequisites are good so that the price of precious metals begins to rise, while all the forecasts are much higher than those that have been observed in recent years.

Newmeyer predicts that by the end of this year the incredible growth in prices for precious metals will begin.

In his estimation, the price of gold can reach $ 2 thousand or $ 3 thousand, and in a rather near future.

Experts also note that for almost a decade, financial analysts and large institutions have avoided investments in gold and silver. However, this trend is changing.

As prices remain lower, governments, large banks buy up precious metals.

Recently, even in Morgan Stanley noted that gold can replace the dollar for a long period of time.

Thus, more and more experts are inclined to conclude that gold is the most reliable asset, as proved by its centuries-old history.