Russia Strikes Back Against Sanctions. -from a post that was sent to me.
EDIT: an important response from a trusted jeweler friend of mine at the bottom.
The Russian Central Bank has announced that the ruble is now tied to gold at 5000 rubles per gram of gold.
There are 28 grams in each ounce. 28 grams for 5,000 rubles per gram is 140,000 rubles.
If the rubles are tied to gold at 5000 rubles per gram, and there are 28 grams per ounce, which means that an ounce of gold would cost 140,000 rubles, then the conversion into US dollars means that gold costs 1400 dollars per ounce when using the rubles, instead of 1,928 dollars by ounce using the dollars.
This effectively means Russia just wiped out about 30 percent (30%) of the US dollar worldwide when it comes to gold ingots.
This has been cause for people all over the world to literally throw their money on the ruble and disregarding dollars and euros to do it.
What Russia just did is the financial equivalent of detonating a nuclear bomb.
The last guy on this planet to try to support a currency with gold was Muammar Quadaffi of Libya.
That did not work out well for Quadaffi. That was a threat that needed to be removed by those not wanting to see currency supported by gold.
What Russia has done will damage both the both the US dollar and the Euro.
Last week, Russia said it would sell only OIL and GAS in Rubles
This means that Russian oil and gas are anchored in gold with rubles like gold proxy.
EFFECT: Europe (which needs Russian gas and oil) will now have to buy rubles from Russia using gold, or pay for oil and gas with gold itself.
Currently, the FOREX rate for Rubles to Dollar is around 100:1
BUT… with 5,000 Rubles now equivalent to a gram of Gold, and oil being priced directly into Gold, we will see a MASSIVE price disturbance in the FOREX markets, in terms of how much Gold a Dollar can still buy.
Foreign countries holding dollar debt notes as a reserve will see an immediate and much less use for them and will want to start downloading them in favor of something more stable; something that holds its value.
Basically, any currency anchored in gold will fit into the account. which means countries like that – like Japan – will start unloading their dollar debt as soon as possible. They’ll move to more stable values like… The Ruble.
This will have a DE-flationistic effect on the Ruble, making it more precious with time.
The immediate result is that all those foreign countries dumping their dollar reserves will make all those excess dollars start going home, triggering a worse hyper-inflation than we already have in the USA.
Russia holds roughly $130 billion in gold reserves, according to lawmakers.
Unleashing sanctions on Russia will bring a backlash that will effect the entire global economy.
It will be interesting to monitor the monitor the daily price of gold going forward.
from BenDannie… https://goldbuyer.com
First of all, gold is weighed in Troy ounces (31.1 grams per oz) not Avoirdupois ounces (28 grams per oz) The math is a small difference when 28 is used rather than the correct value of 31.1 in the formula and its applied to a single ounce. But this is a huge difference when calculating the world trade for a year or decade. This is a red flag to me that the report is unaware of a very simple fact & I find it an unbelievable one that anyone knowledgeable could make such a mistake.
On to the rest of the report, many factors & variables and forces contribute to the worlds “dominant reserve currency” other than the few described in the report. And a Paradigm shift will be prevented by the non-described forces that will arise, so I see no possibility of the reports scenario playing out. IMHO It’s a desperate attempt by Russia to distract the news cycle from war & to side step US & NATO sanctions by offering 1850 dollars of oil for a discounted price of 1400 & get gold which it can sell anywhere as the world bank has barred Russia. Also China has been trying to replace US as the reserve currency for quite some time and would never be willingly beaten to it by another country.
Also since Russia has announced there has been very little movement in gold prices, although it’s slightly elevated on Friday.