The Bank of Russia has resumed gold purchases this week, but more importantly, the regulator is doing so at a fixed price of 5,000 rubles ($59) per 1 gram between March 28 and June 30, raising the possibility of Russia returning to the gold standard for the first time in over a century. If the country takes the next step, as has been proposed this week, to sell its commodities priced in rubles, these combined moves could have huge implications for the ruble, the US dollar, and the global economy.
By offering to buy gold from Russian banks at a fixed price of 5,000 rubles per gram, the Bank of Russia has both linked the ruble to gold and, since gold trades in US dollars, set a floor price for the ruble in terms of the US dollar. We can see this linkage in action since Friday 25 March when the Bank of Russia made the fixed price announcement. The ruble was trading at around 100 to the US dollar at that time, but has since strengthened and is nearing 80 to the US dollar. Why? Because gold has been trading on international markets at about US$62 per gram which is equivalent to (5,000 / 62) = about 80.5, and markets and arbitrage traders have now taken note, driving the RUB/USD exchange rate higher. Russia is the world’s largest natural gas exporter and the world’s third largest oil exporter. We are seeing right now that Putin is demanding that foreign buyers (importers of Russian gas) must pay for this natural gas using rubles. This immediately links the price of natural gas to rubles and (because of the fixed link to gold) to the gold price. So Russian natural gas is now linked via the ruble to gold.
Lol losers like this write out whole essays on shit they've had trickledown through telegram groups originally posted on realbuzinessnewsindia blogs as if any of this shit matters to anyone except a very very VERY small subsection of society that you'll die before you're ever allowed into
Nolan Cruz
Brot
Josiah Watson
It's not gold backed you can't redeem gold for ruble retard.
Samuel Howard
the gold standard is what lead germany out of poverty after ww1 and is what lead to ww2.
Nolan Baker
If thats true then its truly based
And i would apologize and stop thinking russia is the jew
Cooper Clark
Russia fixing the RUB price against gold is a bad thing. If their economy were truly healthy they'd free float RUB and gold.
Carter Hughes
At 5000 Ruble per gram, Russia is selling their gold at 6% discount lmao
>for Russians only >fixed until June 30 this isn't returning the gold standard it's the Russian central bank effectively subsidizing gold purchases for Russians until the 30th of June. if they open it up to everyone outside of Russia it would be different
To be completely fair, unless you know about the importance of gold as a monetary standard, the difference between money and currency, what sound money vs currency do to economies, and so forth, you don't really grasp the sheer importance of what Russia just did.
Most normies are just gonna go "lmao boomer rocks what good are they" and continue looking at tanks and corpses in Ukraine, while the actual war is a fight to end the supremacy that the petrodollar has had on the global economy for 50 years now.
Isn't this why the kikes mobilized the west against Germany in WW2?
Gabriel Moore
They're selling black gold for Ruble retard.
Benjamin Gonzalez
>tells RT I'll be holding my breath
Isaiah Ortiz
You can't sell ruble for gold retard. Nobody is going to take your vatnik coupons in exchange for actual gold.
Bentley Young
It's the same fiat ponzi as it is today but with gold instead oil.
Evan King
Yes, and against Saddam, and Qaddafi. Difference is that those didn't have nukes.
Ayden Morales
learn to read and write, retard
Dylan Campbell
...
Robert Green
>tie it's economy to gold when it has fossil fuel and wheat? Because it's fossil fuel is offline and their wheat harvest is looking bad too. Fixing the ruble gives the appearance of stability.
Short-term, it'll probably trail gold at the same ratio it's been at for years. But if, and that's a big if, the US decides to back their neo-dollar with silver, as is rumored, it'll skyrocket.
Hold both gold and silver if you're into PMs.
Nathaniel Ross
>german
retard.
Jason Sullivan
>Implying this doesn't have interesting and large geopolitical consequences that may affect everyone. Seethe more glowie
Aaron Lewis
Kikes absolutely seething!!
Oliver Hill
>now that we gotten rid of international trust, crashed the ruble and made everyone want to get out of russian contracts, now is the perfect time to back our burning currency with gold
>misunderstood everything that was written >wrote shit he didn't mean to convey because poor language skills >calls other people retarded i really hope you're a migrant and not actually austrian
Caleb Russell
Russian central bank will. But you have to buy the ruble from the Russian central bank in the first place so it comes out on top (unless you dump existing reserves which you propably didn't have in the first place).
Carson Scott
There's sadly not a 1:1 exchange between rubles and gold right now. If they make that, it's fucking insane.
Joshua Morris
Good thread this lad. Smarter people than me can collate their best thought, interspersed with glowie bullshit and I'll read this later.
