By: Mike Hammer
Yesterday in gold news, Russia’s finance minister Anton Siluanov warned that “If our gold and currency reserves can be arrested, even if such a thought exists, it would be financial terrorism.” The statement came amidst increasing “considerations” of increased US and EU sanctions against Russia.
When a country is heavily sanctioned abroad, one of the last steps usually taken is to freeze assets of the country’s central bank held in overseas banks, often in the UK, US, and/or EU. This is not often done, as it is seen as a very extreme measure – it greatly reduces the amount of business the country can conduct overseas, as central bank reserves are viewed as security for payments coming out of the country. Such a statement coming from out of nowhere by the top-ranking Russian financial official hints at the tension and pressure going on behind the scenes between Russia, the US, and the EU.
Apparently it’s not just US Democrats who are annoyed with the Russians. And of course, should Russian central bank assets be frozen, it would mean a big surge in geopolitical tension, with an expected rise in gold prices. You can read more about it in today’s featured article here.