The Far East Development Fund and China National Gold Group are joining forces to launch new precious metals projects in Russia. Here’s the details…
By IIya Arkhipov and Yuliya Fedorinova are reporting via Bloomberg that China and Russia are joining forces yet again in the gold space. This time, it’s a joint, $1,000,000,000 mining venture and the end prize is the yellow metal.
Here’s more from the article:
Russia’s state-owned Far East Development Fund is in talks to create a $1 billion joint venture to invest in the country’s mining industry with China National Gold Group, a government controlled producer of the precious metal.
“We and China Gold will create an attractive financial platform that private investors can take part in and make money,” Alexey Chekunkov, head of the fund, said in an interview in Danang, Vietnam, where he attended an Asia-Pacific Economic Cooperation business forum. “Our first goal will be to invest in gold, precious metals and copper projects.”
The parties may sign an agreement to create the mining fund by the end of the year, he said. The fund will begin with about $500 million before expanding and may make its first investment in 2018. Far East Development and China Gold will each invest $100 million, with a further $300 million from private investors, Chekunkov said.
Just a reminder, China and Russia are adding to their stack:
As the West is adding to their debt based fiat currency housing, stock and bond bubbles, and they are not adding to their stack at best, or the case of Canada, who has sold off its stack at worse:
However, those “official gold reserves” come from the World Gold Council, and the numbers are, in themselves, highly suspect. There are analysts who believe China’s gold reserves are actually more like 20,000 to 30,000 tons. See here and here for more.
As for the U.S. gold reserves, well, rest assured that “gold is safe”. Whatever that means:
— Steven Mnuchin (@stevenmnuchin1) August 21, 2017
— United States Mint (@usmint) August 24, 2017