Here’s one result of the Obama administration’s imposition of sanctions on Russia to punish the latter for annexing Ukraine’s Crimea peninsula.
Tyler Durden reports for Zero Hedge, May 21, 2014, that Russia has been dumping U.S. treasury bonds at an unprecedented rate.
In March 2014 alone, Russia sold a record $26 billion, or 20% of its U.S. treasuries holdings.
And what is Russia buying?
Goldcore says that in April 2014, Russia’s central bank bought 900,000 ounces of gold worth $1.17 Billion, thereby increasing Russia’s gold reserves to 34.4 million troy ounces (or 1,069 tonnes) in April, from 33.5 million troy ounces in March.
As of May 1, the value of Russia’s gold holdings rose to $44.30 billion, compared with $43.36 billion a month earlier.
According to the World Gold Council (via Wikipedia), as of December 2013, the United States ranked first in the world in officially reported gold holdings, of 8,133 tonnes. Russia ranked 7th, at 1,042 tonnes.