Posted on 12/27/2012 7:18:58 PM PST by theBuckwheat
On the 17th the bank issued three values of bullion:
31.1g silver pieces with a 3RUB face value 7.78g gold pieces with 50RUB face 15.55g gold pieces with a 100RUB face value These bullion pieces are legal tender in the Russian Federation.
The announcement on the Central Bank of Russia’s website is, of course, in Russian.
However, if you trust Google Translator, below is an English summary of the announcement....
In English...
The coins are legal tender cash payment in the Russian Federation and must be accepted at face value in all kinds of payments without any restrictions.
(Excerpt) Read more at dgcmagazine.com ...
Add me to the Gold Bug Ping list. Thanks.
“Tungsten”
Exactly!
They’re essentially the same as our gold and silver eagles. IDK what the current value of gold is in rubles, but until it gets close to parity, people will use paper ones to buy stuff.
An aside to that though, I believe Ron Paul was very canny in his legislation creating ours because they are legal tender and MUST be minted in any quantity demanded by the public. I believe he had the foresight to see the endgame financially and got that legislation passed to provide us a currency for when the paper ponzi collapses. The numbers are getting close to, if not equaling, roughly the same amount as that which circulated during the minting of pre-1933 gold and pre-1965 silver (as compared to the population too)...
You are added.
This want last long. See Gresham’s law of money.
CC
The Russian website says that they are only issuing 100,000 and 300,000 of these anyway, so they sound like collectors items ("uncirculated" condition) rather than mass currency.
The "bad" paper rubles will drive out the "good" gold rubles. Which is exactly what happens with the US Mint's gold and silver collectors coins - they are never circulated unless some kid breaks into his dad's coin collection to buy candy.
I had originally thought it was Russia's attempt to move their money back to the gold standard. After looking at the numbers it is just the Russian treasury selling collectible gold, probably at above the spot rate for gold and to be able to coin it they have to give it some nominal value in rubles.
It's up to the buyer and seller of goods to agree on prices.
If Russia was really trying to convert to a gold or silver backed currency, then it must be done in a fashion which does not toy with existing debts or assets.
I seriously doubt that. Putin is not a fiat kind of guy, and he doesn’t want the world’s largest oil reserves priced in dollars. I predict these bars will be heavily purchased.
Can that be right?
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