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-- Posted Wednesday, 17 June 2009 | Digg This Article | | Source: GoldSeek.com
Russia is proposing the inclusion of the ruble, yuan and gold as a part of a revised basket of currencies to form the valuation of the IMF’s special drawing rights seen as the coming new alternative global reserve currency, reported AP. At a summit meeting yesterday Russia and China challenged the reserve currency status of the dollar with two initiatives, while at the same time professing their support for the green back in which both countries have huge bond holdings. Gold for SDRs China is to extend a $10 billion loan to a regional group that comprises Russia and four central Asian states, presumably money that would previously have bought US bonds. And Russian president Dmitry Medvedev called for the strengthening of the international monetary system ‘not only by making the dollar strong, but also by creating other reserve currencies’. Senior Kremlin officials told a briefing that Russia may invest in bonds issued by Brazil, China and Russia, and that they want the ruble, yuan and gold to be part of a revised basket of currencies to form the valuation of the IMF’s SDRs. Officials said that this process ‘can’t happen fast’ and that currency shocks were ‘not wanted now’ and that ‘no one wants to bring the dollar down’. However, it is of course the imminence of the soaring US budget deficit that will likely boost inflation that has heightened worries among US bond holders about the value of the greenback, and stimulated the search for an alternative. Gold price low That gold should be included in SDRs is a new proposal, and likely to be seen among Arabs and investors around the world as a further reason to buy gold at present prices. All the studies into the monetization of gold have concluded that the value of the precious metal would soar under such a scenario because of its relatively tight supply. It would therefore seem logical for anybody planning to buy a few ounces or 100 tons of the precious metal to buy before prices start to really escalate. For gold it would seem the only way for prices is up as it becomes part of the world’s fight back against inflation and devaluation of the US dollar.
-- Posted Wednesday, 17 June 2009 | Digg This Article | Source: GoldSeek.com
Previous Articles by Peter Cooper
About Peter Cooper:
Oxford University educated financial journalist Peter Cooper found himself made redundant by Emap plc in London in the mid-1990s and decided to rebuild his career in Dubai as launch editor of the pioneering magazine Gulf Business. He returned briefly to London in
1999 to complete his first book, a history of the Bovis construction group.
Then in 2000 he went back to Dubai to become an Internet entrepreneur, just as the dot-com market crashed. But he stumbled across the opportunity to become a partner in www.ameinfo.com, which later became the Middle East's leading English language business news website.
 Over the course of the next seven years he had a ringside seat as editor-in-chief writing about the remarkable transformation of Dubai into a global business and financial hub city. At the same time www.ameinfo.com prospered and was sold in 2006 to Emap plc for $27 million, completing the career circle back to where it began a decade earlier.
He remains a lively commentator and columnist as a freelance journalist based in Dubai and travels extensively each summer with his wife Svetlana. His financial blog www.arabianmoney.net is attracting increasing attention with its focus on investment in gold and silver as a means of prospering during a time of great consumer price inflation and asset price deflation.
Order my book online from this link
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Russia Proposes Gold Be Included In New Global Currency
