Russia defaulted on its foreign-currency sovereign debt for the first time since 1918. Yet, Russian officials have called it artificial because they can afford to pay the debts, but sanctions have frozen its foreign currency reserves held abroad. The debt stems from the country’s invasion of Ukraine. In other news, precious metal prices rose on Monday morning as G-7, the Group of Seven, an inter-governmental political forum, planned to announce a ban on new gold imports from Russia. John Kaiser, Founder of Kaiser Research Online, told Kitco News that he thinks the dollar will soon lose its status as the world’s reserve currency as China and Russia form an Eastern axis of economic power. As political uncertainty rises, he’s warning that physical gold is the only safe haven to invest in. “We see even in America, lots of people wanting to have an autocracy, a dictatorship as the foundation,” he said. “Now if this starts to happen, everything starts becoming unstable and currencies, even the US dollar, become unstable… So, the only mobile asset commodity that I think is a safe haven is physical gold. Not crypto or anything like that.”


Kitco News
‘Physical gold, not crypto’ is the only safe haven asset, as the U.S. dollar declines – John Kaiser

Gold will rise as the U.S. dollar loses its status as the world’s reserve currency, said John Kaiser, Founder of Kaiser Research Online, at the PDAC 2022 Convention in Toronto. He mentioned that China and Russia would form an Eastern axis of economic power.

“The US dollar will not be used within the China-Russia axis,” said Kaiser. “They’re going to fracture the hegemony of the US dollar. It’s not an overnight thing, it’s not black and white. It’s going to be a transitional thing. And I think that’s where the real price of gold will flourish.”

Kaiser spoke with David Lin, Anchor and Producer at Kitco News.

You can read the full article, here.


Bloomberg via Yahoo Finance/Ranjeetha Pakiam and Eddie Spence
Gold Rises Even as G-7 Russia Import Ban Seen ‘Largely Symbolic’

Gold rose after the Group of Seven nations planned to announce a ban on new gold imports from Russia, even as analysts saw the move as “largely symbolic.”

The US, UK, Japan, and Canada plan to announce the ban during the G-7 summit that started Sunday in Germany. While Britain’s government said over the weekend that the measure “will have global reach,” analysts played down the potential impacts as the London Bullion Market Association, which sets standards for that market, removed Russian gold refiners from its accredited list in March.

Keep reading, here.


Fox Business Insider/Landon Mion
Russia defaults on foreign debt for first time since 1918 following sanctions

Copper has just tipped into a bear market and it’s happened before each recession in the last 30 years, which could indicate another economic downturn may be underway.

It’s used in everything from electrics and electronics to construction, meaning it’s intertwined with the underlying global economy. The benchmark London Metal Exchange copper price has now fallen 24% from its peak above $10,700 a tonne in May 2021 Friday to trade at $8,255 a ton. A fall of more than 20% from a previous peak is the technical definition of a bear market.

Recessionary fears have picked up speed, fueled by rapidly rising interest rates and red-hot inflation, with some of the world’s biggest banks including Goldman Sachs, Morgan Stanley, and Citi increasing their expectations of a recession hitting the US economy, as the cost of food, fuel and housing continue to squeeze the consumer.

Continue reading, here.

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