Originally Posted by
Daytr
Makes me laugh, Russian bank reserves drop by $4Bln and there is speculation that they are selling gold, when gold only makes up 10% I think of their reserves. I mean what are we talking about here a 1% move? Probably equates to about the value of the move in the Euro or JPY which they hold a hell of a lot more of. But it suits the West to see Russia to sell gold & suffer due to lower oil receipts. Who knows if they have been selling gold, but evidence to date says they have been buying not selling. And lets face it as diversification it has worked well as gold has out performed currencies.
Lower oil obviously hurts Russia as every oil producing nation. But its really going to hurt the US. $800Bln is no small amount of bonds that are at risk, issued by US energy companies in the last 6 months. They are already trading at huge discounts.