> There is one exception to the rule about reserves as notations: About $132 billion of Russia’s reserves takes the form of physical gold in vaults inside Russia. Russia could pledge that gold or sell it. But to whom? Most potential customers for Russian gold can be threatened with sanctions. Those who might defy the threat couldn’t afford to take very much: The entire GDP of Venezuela, for example, is only about $480 billion.
> Only one customer is rich enough to take significant gold from a sanctioned nation like Russia: China.
> Would China agree to take it? And if China did agree, would it not demand a big and painful discount for helping out a distressed seller like a sanctioned Russia? How exactly would the transaction occur? Would China be content merely to take legal ownership of the gold and leave the metal inside in a Russian vault? Doubtful. One ton of gold is worth about $61 million, so $139 billion would weigh about 2,290 metric tons. It’s certainly conceivable for a locomotive to pull a train of that weight from Moscow to Beijing. But it would constitute a considerable logistical and security undertaking to load, move, unload, and secure the gold for a train trip across Siberia.
China's abstention at the Security Council vote indicates this might not be an enormously viable option, too.
>It’s certainly conceivable for a locomotive to pull a train of that weight from Moscow to Beijing. But it would constitute a considerable logistical and security undertaking to load, move, unload, and secure the gold for a train trip across Siberia
In which a British gentleman (of a sort) decides to steal the gold being transported to pay British soldiers fighting the Russians in Crimea. Mostly because, eh, it seems like a challenge.
Written and directed by Michael Crichton. Starring Sean Connery, Donald Sutherland, and Lesley-Anne Down.
Why would China buy Russian gold? They don't really need to. I doubt the Chinese government wants to get evolved in such a risky endeavor,possibly facing sanctions or losing goodwill, just to get some gold at a discount.
> There is one exception to the rule about reserves as notations: About $132 billion of Russia’s reserves takes the form of physical gold in vaults inside Russia. Russia could pledge that gold or sell it. But to whom? Most potential customers for Russian gold can be threatened with sanctions. Those who might defy the threat couldn’t afford to take very much: The entire GDP of Venezuela, for example, is only about $480 billion.
> Only one customer is rich enough to take significant gold from a sanctioned nation like Russia: China.
> Would China agree to take it? And if China did agree, would it not demand a big and painful discount for helping out a distressed seller like a sanctioned Russia? How exactly would the transaction occur? Would China be content merely to take legal ownership of the gold and leave the metal inside in a Russian vault? Doubtful. One ton of gold is worth about $61 million, so $139 billion would weigh about 2,290 metric tons. It’s certainly conceivable for a locomotive to pull a train of that weight from Moscow to Beijing. But it would constitute a considerable logistical and security undertaking to load, move, unload, and secure the gold for a train trip across Siberia.
China's abstention at the Security Council vote indicates this might not be an enormously viable option, too.