Are the sanctions on Russian gold miners aimed at slowing global central bank purchases of gold?
This short post deals with the growing trend of global fragmentation or de-globalization.
The above sanctions on Russian gold miners translate to the increasing weaponization of natural resources, which could lead to more resource nationalism.
And the injunction does not seem to be directed only against Russia—the 2nd largest producer w/ a 10% share of world production—but implicitly also against buyers/consumers of gold.
Since central banks have been significant buyers of gold—which hit a record last 2022—as shown by the chart from the Economist—the intent of this prohibition could be to slow its accumulation.
Could this signify a countermeasure against the mounting activities of the Global South to establish a rival currency against the US dollar standard?
And as the chart of @VCElements also shows, Australia, Canada & US have only an aggregate 22% share of total production, which means the Global South/emerging markets control the rest.
The escalation of sanctions could lead to more supply constraints, which scarcity could fuel higher prices as intensifying uncertainties could increase demand for gold.
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