What traders think of U.S. led efforts to block gold transactions by Russia’s central bank

MarketWatch/MyraSaefong/3-24-2022

[Gold market analyst Brien Lundin] believes the end result of the gold-related actions would be to ‘alert the 36 countries who hold significant portions of their gold reserves in the values of the New York Federal Reserve that they should take their gold back as soon as possible.’”

USAGOLD note: What Lundin says is logical. He adds that such liquidations would “create significant turmoil in the gold market since the [Federal Reserve] has demonstrated difficulty in actually finding and transporting the gold held for other nations.” In short, any gold the Fed cannot deliver would have to be sourced in the open market exacerbating an already tight physical supply situation. We would add that the bullion banks storing gold at the Bank of England will be similarly affected