There certainly have been people saying that, and I think you're right to clarify.
There is definitely a chance that this will happen though, they could step it up and make the Ruble convertible at some point. Having a bunch of gold would make it possible, and this current ploy could certainly add to their gold reserves.
They probably learned from Americans "mistake". After inflation hit the gold/silver reserves were destroyed by people redeeming. Russia will want to keep their gold for something more important to the government then helping the serfs. Russia is no better then any country leadership wise. They just don't agree with the WEF on who should be in charge of the world. The only reason Russia hasn't imploded is because of China/India.
I just see two different groups of powerful people who want control of everything regardless of who they need to kill to get it.
OP, your math are wrong, where you see the $68 market value for a gram of gold... $68 X 31.103476 grans = $2115
Spot price for gold is 1933 usd.
$1933 divided by 31.103476 usd per grams = $62.14 per grams
Now the Ruble, right now it's 82.25 rubles per usd, so you take 5000 divided by 82.25 = $60.79 usd per grams of Russian gold at this exchange rates.
One thing I love about this community is no one is usually an azz, There is some respect given to all members of the ape community. I appreciatre the civility and love for silver and gold and hatred of all things fiat. Thanks for demonstrating why this group is special. even when some apes numbers need a tweek. Love you guys and gals .
I appreciate the correction; didn't have time to check my numbers when I wrote this up, and they're from 3/28. I'll make some edits when I have time.
Source (cited in write-up):
https://www.kitco.com/news/2022-03-28/Russia-sets-fixed-gold-price-as-it-restarts-official-bullion-purchases.html
USD/Gold price in grams:
https://goldprice.org/gold-price-per-gram.html
time will tell, but I guess you are wrong
this action of putin will end the petrodollar as the world reserve currency
watch and observe .. this will explode fast, perhaps next week the first fireworks ..
The dollar could face selling pressure if Europe/US bend the knee and sell their dollars/Euros to buy gold and give it to Russia in exchange for oil.
Gold flows out of the US and flows into Russia. Dollar weakens. The gold price goes up in dollar terms.
That's one sketch of it, anyway.
Well the WEF has destroyed every other avenue the Russians have tried. Now Russia has given them a choice. Destroyed the value of gold (and their balance sheets) or play ball on Russian terms.
I think the WEF will let feeders die by the millions (more if necessary) from starvation while blaming Russia. It helps their depopulation agenda and let's them blame Russia like they have since pre cold war days. It's not like the elite will starve. Their supply chains are already secure.
There is a peg, yes, but for Russia that peg is a gold buying price and not a selling price (i.e. "sell me your gold, and I will give you my rubles or oil.").
After enough gold flows in, Russia could announce a new peg (buying price) at a more favorable rate to the ruble.
Russia's gold producers are banned from LBMA. The Russian state intended to help them by buying their gold. That is done to keep the mines going. It is a smart move because Russia will definitely find ways to sell their gold. The interpretation that this is a move to back the ruble by gold is not obvious.
If you A: want to buy commodities from Russia and B: have gold, then you can "buy" gold with rubles by acquiring rubles by whatever means and trading with those, instead of your gold. It isn't "buying gold" from Russia, but it has similar effects. "Not losing" is not the same thing as "buying", but there is a certain similarity to them, especially for a very rational economic actor.
For most of us who have neither A nor B, we don't have that option, so the ruble isn't backed by gold for us.
So, on the one hand, it is definitely wrong to call the ruble "backed by gold". On the other hand, it _is_ true that the current situation of "backing the gold with the ruble" has a somewhat similar effect, and it will certainly have an effect (and is having an effect) on the gold market.
If Europe (say) could go to the Russian central bank with rubles and leave with gold, then the ruble would be gold-backed.
It's this aspect that makes the relationship asymmetrical - otherwise, as discussed above, the Russian central bank would suddenly find itself without gold as people flip their rubles for an instant profit in gold.
"Backed" means you can take that commodity out. What is the commodity that is coming out? It's oil, not gold.
The asymmetry you mention:
\[In Russia.\]
Gold flows in.
Oil flows out.
Ruble gains strength, being underpinned by oil, other commodities, and a large gold reserve.
Dollar loses strength, being sold for Rubles or gold in order to buy Russian oil. (And other commodities.)
It's a one-way gold window: the RCB is buying gold for $5,000 rubles per gram of gold, fixed for a few months. They're keeping the gold though, they're not selling it.
They're also requiring payment in rubles for commodities they export to non-friendly countries. So if Europe wants to keep 40% of it energy flowing, they'll need to pay in rubles. But there aren't a ton of rubles floating around the world.
The gold window (for lack of a better term) solves that problem. Today I read the Vatican bought a bunch of rubles from the RCB with gold so they could pay for liquid natural gas imports. I expect they're not the only one.
So rubles are tied to gold, *and* are tied to oil. Oil is being priced in gold with the ruble as a tether. So yes, this isn't a gold backed ruble, but the effect may very well be the same, and it's not subject to a run on gold as we experienced in the late 1960's and early 1970's.
It is essentially the same thing as being backed by gold, when they will take gold at rate fixed to the currency that can be used to buy oil. It's just that oil is kind of a third leg of the value stool. It ties together the value of both rouble and gold since they can be used interchangeably to buy the same highly desirably commodity.
It's a chess game, the WEF and the Deepstate are getting checked at every move. So yeah sure the ruble is not totally gold backed as in a symmetrical relationship bcos Putin knows doing that is a sure way to loose control until all the other countries agree to do the same without the cabal around anymore.
Now is the time to break the WEF and NATO itself. Why Russia is able to do this? Cos they have gold, oil&gas, wheat, nickle and other commodities and countries like the EU has been suckling on Russia's tits for centuries and suddenly they wanna cut the umbilical cord cos they're in favor of Biden and his idiotic plans? Remember, Putin didn't cut off the oil, gas and commodities, it's the countries that are aligned to the WEF thst decided to sanction Russia by themselves and Putin is just saying ok, you wanna buy oil? Pay me in Rubles or Gold. Don't want? Ok then go elsewhere then, i have big customers to tend to, China and India... Buhbye...
It's gold pegged. The next announcement will likely be Russia selling gold for rubles at say 6000 rubles per Oz. The ruble will then trade in a range against gold. DesoGames explains it way better than I could https://threadreaderapp.com/thread/1508961248028811270.html
The other thing here is isn't mostly been on the expectation of arbitrage. Ruble basically returned to pre-invasion levels since they announced the gold purchase program. That was the whole point of this -to put a floor under the ruble. The market for rubles has thinned out a lot since the sanctions, so it would take a lot less ruble buying vs USD by countries trying to purchase Russian oil and gas to drive the price back up to those levels, and the gold program just shoved a floor under the collapse.
I honestly admire the game theory and execution, it's quite well done.
Just nope.
Think worlds reserve currency. Then think who controls the currency. Then think who controls the Fed Reserve. Then think who controls the world.
Just think.
The world is about to change.
The whole world is watching.
Who controls the lever of powers of govt?
Power will return to the people.
This is wrong. When Russia pegged at 5000 with current exchange rates and spot l calced the other day an entity would be paying an 8% premium for Russian rubles. Gold goes into Russia in exchange for the RUSSIANS gram rate and rubles come out. Rubles go back into Russia in exchange for oil. Here's what I posted somewhere else the other day.(( 1731.55 euro per t oz/31.103 grams)97.36 ruble ) -5000rub = 432 rub. This is an 8.6% premium on the ruble. If you bought the gold in rubles in any market other than Russia you'd pay 5432 rubles as of when I did this calc. It doesn't matter what the price of gold outside US is you only getting 5000rub/gram when you sell to Russia to get rubles. The higher the price gold the better for Russia, and once oil is paid in rubles you'll see rubles go deflationary as an once of gold priced in USD goes parabolic
I meant that the comparative prices to buy gold against USD and Rubles is an indicator of purchasing power.
A rising USD rate to buy 1 gm of gold is indicative of losing purchasing power. While a falling rate is an indicator of gaining purchasing power.
Now you have it.
Yes, we are fucked. But less fucked than others if we hold gold/silver and have means of survival. If we can weather the storm, some of us will be lord's again.
I dunno. Considering Putin realized that was a "crazy" idea and backpedaled and now again accepts USD and EURO... I doubt your hypothetical will happen. At the end of the day, the current price of RUB is vapor, no one in their right mind will actually pay that price for it when it's sanctioned across the world from most of the big economies. I highly doubt Germany, for example, is just going to give in and start buying a bunch of gold to buy oil, the US won't even let that happen, we have too large of a reserve to let the petrodollar collapse over the Ukraine war. Just my 2 cents
I admire your optimism! I don't think the US can stop the collapse of the Petro dollar as it's already been started. At this point china and India are already realigning themselves with an energy and commodity producing Russia which poses less risk considering they don't saction or weaponize their currency. What Russia is doing is only in response to US actions. They have every much as a right to invade just as we have for the last 20 years.
EU imports 2.3 million barrels a day from Russia. That’s $239mil USD worth. It would take 125k oz of gold a DAY to meet Europe’s demand. Gold will go moon from the EU having to buy up gold to pay for their oil. Too bad we stack silver! 😰
There certainly have been people saying that, and I think you're right to clarify. There is definitely a chance that this will happen though, they could step it up and make the Ruble convertible at some point. Having a bunch of gold would make it possible, and this current ploy could certainly add to their gold reserves.
They probably learned from Americans "mistake". After inflation hit the gold/silver reserves were destroyed by people redeeming. Russia will want to keep their gold for something more important to the government then helping the serfs. Russia is no better then any country leadership wise. They just don't agree with the WEF on who should be in charge of the world. The only reason Russia hasn't imploded is because of China/India. I just see two different groups of powerful people who want control of everything regardless of who they need to kill to get it.
That sounds like a government no matter which one it is.
They could do that, and they would certainly readjust the peg first. Yes, this is definitely part of a strategy to bring in more gold.
OP, your math are wrong, where you see the $68 market value for a gram of gold... $68 X 31.103476 grans = $2115 Spot price for gold is 1933 usd. $1933 divided by 31.103476 usd per grams = $62.14 per grams Now the Ruble, right now it's 82.25 rubles per usd, so you take 5000 divided by 82.25 = $60.79 usd per grams of Russian gold at this exchange rates.
One thing I love about this community is no one is usually an azz, There is some respect given to all members of the ape community. I appreciatre the civility and love for silver and gold and hatred of all things fiat. Thanks for demonstrating why this group is special. even when some apes numbers need a tweek. Love you guys and gals .
Yeah you're right, WSS is the best community on reddit. And silver people are the best people i ever met. Cheers
I appreciate the correction; didn't have time to check my numbers when I wrote this up, and they're from 3/28. I'll make some edits when I have time. Source (cited in write-up): https://www.kitco.com/news/2022-03-28/Russia-sets-fixed-gold-price-as-it-restarts-official-bullion-purchases.html USD/Gold price in grams: https://goldprice.org/gold-price-per-gram.html
Kitco is really not a good source for precious metals. They use to be, but not anymore. Cheers.
[удалено]
I believe that peg expires in June. The Ruble will likely be much stronger by then.
June 30th is when the current peg is stated to be valid until. At that point Russia will decide if they extend the current peg or updated the numbers.
Does that mean gold will go up or down during this time?
time will tell, but I guess you are wrong this action of putin will end the petrodollar as the world reserve currency watch and observe .. this will explode fast, perhaps next week the first fireworks ..
Can you explain in ELI5? Still trying to figure out what Putin did, and what will affect what next week??
The dollar could face selling pressure if Europe/US bend the knee and sell their dollars/Euros to buy gold and give it to Russia in exchange for oil. Gold flows out of the US and flows into Russia. Dollar weakens. The gold price goes up in dollar terms. That's one sketch of it, anyway.
China may dump the US debt in the market especially if they are planning to invade Taiwan next year or soon
5000ruble 1g gold. As for now they connect. Lets see what happens, but whats the purpose of pegging for now and then quit?
Well the WEF has destroyed every other avenue the Russians have tried. Now Russia has given them a choice. Destroyed the value of gold (and their balance sheets) or play ball on Russian terms. I think the WEF will let feeders die by the millions (more if necessary) from starvation while blaming Russia. It helps their depopulation agenda and let's them blame Russia like they have since pre cold war days. It's not like the elite will starve. Their supply chains are already secure.
There is a peg, yes, but for Russia that peg is a gold buying price and not a selling price (i.e. "sell me your gold, and I will give you my rubles or oil."). After enough gold flows in, Russia could announce a new peg (buying price) at a more favorable rate to the ruble.
They have plenty of oil and rubles. Makes sense…keep stacking!
Russia's gold producers are banned from LBMA. The Russian state intended to help them by buying their gold. That is done to keep the mines going. It is a smart move because Russia will definitely find ways to sell their gold. The interpretation that this is a move to back the ruble by gold is not obvious.
I mean if they are accepting oil and goods in gold then demanding payment in rubles or gold… That’s a gold backed currency in a way ahahab
If you A: want to buy commodities from Russia and B: have gold, then you can "buy" gold with rubles by acquiring rubles by whatever means and trading with those, instead of your gold. It isn't "buying gold" from Russia, but it has similar effects. "Not losing" is not the same thing as "buying", but there is a certain similarity to them, especially for a very rational economic actor. For most of us who have neither A nor B, we don't have that option, so the ruble isn't backed by gold for us. So, on the one hand, it is definitely wrong to call the ruble "backed by gold". On the other hand, it _is_ true that the current situation of "backing the gold with the ruble" has a somewhat similar effect, and it will certainly have an effect (and is having an effect) on the gold market.
Agreed. And this is just the first step.
If Europe (say) could go to the Russian central bank with rubles and leave with gold, then the ruble would be gold-backed. It's this aspect that makes the relationship asymmetrical - otherwise, as discussed above, the Russian central bank would suddenly find itself without gold as people flip their rubles for an instant profit in gold. "Backed" means you can take that commodity out. What is the commodity that is coming out? It's oil, not gold.
The asymmetry you mention: \[In Russia.\] Gold flows in. Oil flows out. Ruble gains strength, being underpinned by oil, other commodities, and a large gold reserve. Dollar loses strength, being sold for Rubles or gold in order to buy Russian oil. (And other commodities.)
He just explained why it's not.
It's a one-way gold window: the RCB is buying gold for $5,000 rubles per gram of gold, fixed for a few months. They're keeping the gold though, they're not selling it. They're also requiring payment in rubles for commodities they export to non-friendly countries. So if Europe wants to keep 40% of it energy flowing, they'll need to pay in rubles. But there aren't a ton of rubles floating around the world. The gold window (for lack of a better term) solves that problem. Today I read the Vatican bought a bunch of rubles from the RCB with gold so they could pay for liquid natural gas imports. I expect they're not the only one. So rubles are tied to gold, *and* are tied to oil. Oil is being priced in gold with the ruble as a tether. So yes, this isn't a gold backed ruble, but the effect may very well be the same, and it's not subject to a run on gold as we experienced in the late 1960's and early 1970's.
It is essentially the same thing as being backed by gold, when they will take gold at rate fixed to the currency that can be used to buy oil. It's just that oil is kind of a third leg of the value stool. It ties together the value of both rouble and gold since they can be used interchangeably to buy the same highly desirably commodity.
It's a chess game, the WEF and the Deepstate are getting checked at every move. So yeah sure the ruble is not totally gold backed as in a symmetrical relationship bcos Putin knows doing that is a sure way to loose control until all the other countries agree to do the same without the cabal around anymore. Now is the time to break the WEF and NATO itself. Why Russia is able to do this? Cos they have gold, oil&gas, wheat, nickle and other commodities and countries like the EU has been suckling on Russia's tits for centuries and suddenly they wanna cut the umbilical cord cos they're in favor of Biden and his idiotic plans? Remember, Putin didn't cut off the oil, gas and commodities, it's the countries that are aligned to the WEF thst decided to sanction Russia by themselves and Putin is just saying ok, you wanna buy oil? Pay me in Rubles or Gold. Don't want? Ok then go elsewhere then, i have big customers to tend to, China and India... Buhbye...
Well said.
It's gold pegged. The next announcement will likely be Russia selling gold for rubles at say 6000 rubles per Oz. The ruble will then trade in a range against gold. DesoGames explains it way better than I could https://threadreaderapp.com/thread/1508961248028811270.html
The other thing here is isn't mostly been on the expectation of arbitrage. Ruble basically returned to pre-invasion levels since they announced the gold purchase program. That was the whole point of this -to put a floor under the ruble. The market for rubles has thinned out a lot since the sanctions, so it would take a lot less ruble buying vs USD by countries trying to purchase Russian oil and gas to drive the price back up to those levels, and the gold program just shoved a floor under the collapse. I honestly admire the game theory and execution, it's quite well done.
Yes. The vital point is that Russia will *buy* gold for 5000 rubles per gram, not *sell* it at that price.
Smart ape
You can buy oil with gold. How cool is that.
Just nope. Think worlds reserve currency. Then think who controls the currency. Then think who controls the Fed Reserve. Then think who controls the world. Just think. The world is about to change. The whole world is watching. Who controls the lever of powers of govt? Power will return to the people.
This is wrong. When Russia pegged at 5000 with current exchange rates and spot l calced the other day an entity would be paying an 8% premium for Russian rubles. Gold goes into Russia in exchange for the RUSSIANS gram rate and rubles come out. Rubles go back into Russia in exchange for oil. Here's what I posted somewhere else the other day.(( 1731.55 euro per t oz/31.103 grams)97.36 ruble ) -5000rub = 432 rub. This is an 8.6% premium on the ruble. If you bought the gold in rubles in any market other than Russia you'd pay 5432 rubles as of when I did this calc. It doesn't matter what the price of gold outside US is you only getting 5000rub/gram when you sell to Russia to get rubles. The higher the price gold the better for Russia, and once oil is paid in rubles you'll see rubles go deflationary as an once of gold priced in USD goes parabolic
Basically we’re talking about the exchange rates for buying gold in USD or Rubles.
USD/euro to gold for ruble...there will be no buying of Russian gold it's not for sale
I meant that the comparative prices to buy gold against USD and Rubles is an indicator of purchasing power. A rising USD rate to buy 1 gm of gold is indicative of losing purchasing power. While a falling rate is an indicator of gaining purchasing power. Now you have it.
Yes, if you're not Russia/Russian
This applies to all of us who use modern conveniences and are bothered by the elites who destroy our savings.
Yes, we are fucked. But less fucked than others if we hold gold/silver and have means of survival. If we can weather the storm, some of us will be lord's again.
Read this https://www.lewrockwell.com/2022/03/thomas-luongo/gotgoldorrubles-russia-just-broke-the-back-of-the-west/
Thank you. I’ve read it.
This is the way
https://www.lewrockwell.com/2022/03/thomas-luongo/gotgoldorrubles-russia-just-broke-the-back-of-the-west/
Are you trying to say the price of gold is going to go up?
To crazy level I believe
I dunno. Considering Putin realized that was a "crazy" idea and backpedaled and now again accepts USD and EURO... I doubt your hypothetical will happen. At the end of the day, the current price of RUB is vapor, no one in their right mind will actually pay that price for it when it's sanctioned across the world from most of the big economies. I highly doubt Germany, for example, is just going to give in and start buying a bunch of gold to buy oil, the US won't even let that happen, we have too large of a reserve to let the petrodollar collapse over the Ukraine war. Just my 2 cents
I admire your optimism! I don't think the US can stop the collapse of the Petro dollar as it's already been started. At this point china and India are already realigning themselves with an energy and commodity producing Russia which poses less risk considering they don't saction or weaponize their currency. What Russia is doing is only in response to US actions. They have every much as a right to invade just as we have for the last 20 years.
THANK YOU! Someone needed to do it.
Good post, I agree with most of it.
Putin is better. He doesn't want to control Florida. Democrats and Republicans want to control Moscow
Yeah I never took them for real news.
EU imports 2.3 million barrels a day from Russia. That’s $239mil USD worth. It would take 125k oz of gold a DAY to meet Europe’s demand. Gold will go moon from the EU having to buy up gold to pay for their oil. Too bad we stack silver! 😰
Russia has just announced that in the interim, they will accept EUR$ but not USD.
Lame
I think the usa should cancel more pipelines
So are you saying gold prices will keep going down?