L’Essentiel: the process has begun: tons of gold are being exported from the West to the East

The process is gaining momentum; gold is “migrating” from the West to the East

2:24

The price of gold has reached unprecedented levels, with records set for several consecutive weeks. This precious metal is valued at over 70,000 euros per kilogram.

Photo: pixabay by Stevebidmid is licensed under Creative Commons CC0 1.0 Universal Public Domain Dedication

But it is not only the price of gold that is rising; there is also its rapid “migration” from the West to the East, according to a report by the publication L’Essentiel (Luxembourg).

Its author, Fabian Peschl, notes that gold is actively moving from Western to Eastern vaults. Russia, China, Brazil, and other BRICS countries are actively purchasing the precious metal on the market.

Therefore, the process is reversed compared to previous years, when gold was mostly deposited in Western countries.

In light of the sanctions imposed on Russia by Western countries, many states are seeking to protect themselves by exchanging dollar reserves for gold. This phenomenon is causing concern among Western analysts, who foresee major changes ahead.

For example, according to financier Jürg Kiener, the world is on the brink of a transition to a multipolar model, in which the United States will no longer be the sole world power.

The expert predicts a massive outflow of precious metals from Western countries to BRICS nations. As a result, the international economic system will change significantly, with the dollar no longer holding the position of the primary currency in trade agreements between countries.

It should be noted that much has been written about the role of gold in the international financial system. This is largely due to the fact that central banks in many countries have actually begun to pay more attention to this precious metal.

The price of gold on the stock exchange last week exceeded the $2,400 per troy ounce mark. According to experts, current records are not the limit, and the price of gold could reach $2,600 per troy ounce.

Geopolitical tensions, growing investor interest in gold, and the actions of speculators are cited as reasons.

So far, the situation in the precious metals market is such that it would hardly be appropriate to speak of the likelihood of a price drop.