Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

China & Russia Continue to Box Out West

  by    1   1

This post was submitted by Erik Oswald, SchiffGold Precious Metals Specialist.


Russia and China have signed a gas deal that would side-step Western markets. This agreement is just the latest development as the two countries continue to cement ties and diversify their holdings away from the United States. Reaching this agreement further removes the Chinese from dependence on oil purchased from OPEC and thereby puts another nail in the coffin for the petrodollar standard. Not only that, but its announcement comes just days after Mikhail Gorbachev warned that the world is nearing another Cold War.

14 11 11 putin china

Coupled with a marked upshot in demand for physical gold and silver bullion by both nations, it is clear that Beijing and Moscow are preparing for a world without the US dollar as a reserve currency. They appear to be diversifying their assets accordingly, which we summarized in October’s news roundup. In total, Russia will be supplying China with approximately 68 billion cubic meters of natural gas in 2014. To put that number into perspective, 1 billion cubic meters of liquid natural gas is approximately 730,000 metric tons.

Moscow and Beijing signed an agreement to supply gas from western Siberia to China, in a deal that could eventually see more of Russia’s gas flowing to its vast eastern neighbour than to its traditional European markets.

Assuming crucial details such as price are agreed, the deal would mark another big step in President Vladimir Putin’s efforts to build a closer energy relationship with China to offset increasing isolation from the west.”

Get Peter Schiff’s latest gold market analysis – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning more about physical gold and silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!


Related Posts

Gold Hits New All-Time Record High

Gold hit a new all-time nominal high, surpassing the previous record set in December of the previous year. The precious metal’s price reached approximately $2,140, indicating a robust and continuing interest in gold as a safe-haven asset, despite a rather peculiar lack of fanfare from the media and retail investors. This latest peak in gold […]

READ MORE →

Is a Weak Yen Feeding the Global Gold Bull?

The gold price has been surging, with unprecedented central bank demand gobbling up supply. It has been a force to behold — especially as US monetary policy has been relatively tight since 2022, and 10-year Treasury yields have rocketed up, which generally puts firm downward pressure on gold against USD. 

READ MORE →

World Gold Council: “Blistering Central Bank Buying” Fuels Strong Gold Demand

Total gold demand hit an all-time high in 2023, according to a recent report released by the World Gold Council. Last week, the World Gold Council (WGC) released its Gold Demand Trends report, which tracks developments in the demand for and use of gold around the world. Excluding over-the-counter (OTC) trade, 2023 gold demand fell slightly from 2022 […]

READ MORE →

VIX – The Calm Before the Storm

The VIX, often referred to as ‘Wall Street’s fear gauge,‘ is currently portraying a sense of calm among investors, registering well below the 20 level. 

READ MORE →

Four States Consider Lifting Taxes on Precious Metals

Citizens of Georgia, Kentucky, Wisconsin, and Kansas may soon enjoy lower taxes on precious metals if recently introduced pro-metal bills are made law in 2024.

READ MORE →

One thought on “China & Russia Continue to Box Out West

  1. Joe says:

    Peter, I want to thank you for all the free education you have provided over the last 7 or 8 years to myself and anyone who cared enough to listen. Never had economics in school or cared to learn about it. However, with all that has happened over the last decade, it is clear we all should know something on the subject. I feel like I have a bachelors degree just from listening to your radio show, podcasts, interviews.

    YOU ARE DA MAN!

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Call Now