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How much gold is mined per annum in Russia?
“March 28, 2022”
Old News....
i spotted a math error.
There are 31.1 grams in an ounce, not 28.
You probably don’t believe me until you realize gold is measured in troy ounce
I would be more impressed if they were buying rubles and paying in gold rather than buying gold by paying in rubles.
5,000,000 rubles per kilo of gold.
Seems like I remember Gaddafi going to the gold standard before we killed him. The central banks don’t like that.
The author is using the wrong ounce. Troy ounces are used for precious metals which have 31.1 grams each.
“Russia just wiped out about 30 percent (30%) of the US dollar worldwide when it comes to gold ingots.
People all over the world are literally throwing their money on the ruble and throwing away dollars and euros to do it. What Russia just did is the financial equivalent of detonating a nuclear bomb. “
Ok, this one is the funniest out of all the death of the dollar articles. I don’t know if this guy is coming down from an acid trip while writing this or he just thinks his readers are just very dumb.
6.2 trillion (yes, trillion, the one with the T) dollars trade daily. Russia Gross Domestic Product is about 1.5 trilion annually. They export roughly 500 billion. The ruble is a spit in the ocean. It is a gnat on an elephant’s behind. Stop with the kookery that it matters. It does not.
Pretty good idea on Putin’s part.
Russia has only $125 billion of gold. YAWN!!! Americans spend $100 billion on pet supplies and food.
Well, it’s a smart move to collapse fiat currencies that are overdue for a collapse.
The problem is Russia’s ruble is a fiat currency. They have to have enough gold to cover their M2 money supply of about 70 trillion rubles.
Gold is right now calling for about 162,000 rubles per ounce of gold.
So they need 25,000,000 pounds of gold to cover their currency. Or 12,538 tons.
They have 2300 tons.
That means they’re short on gold or their ruble is overvalued by a factor of five.
Doing some quick and dirty math they have 73,600,000 ounces of gold and 70 tn rubles.
That works out to 951,086,956 rubles per ounce of gold on hand.
Seems to me the Russians are screwing themselves here.
Ok, this article is crazy. The ruble’s peg to gold changes the value of the ruble. Gold and the dollar have the same relative value. Nothing changes between the dollar and gold. The dollar is still about 1/1927 per gold ounce. The ruble on the other hand will float up and down with gold which has moved between 1700 and 2100 dollars. But its up a lot from the year 2018 when it dipped below 1200 an ounce.
With US interest rates going up, the dollar should push gold down. As it does not pay interest. So holding gold will not be a good investment while the fed is moving against the money supply and inflation. If more countries with bigger economies do this, like China, it would start to sink the dollar. But don’t expect it. China sells to the US and a very strong yuan relative to the dollar would make all Chinese products too expensive.
But this is very good for Russia because Russia has gold mines and gold reserves. So they can more easily handle the fluctuations. And they shield themselves somewhat from the American forces which have been trying to sink the ruble.
A couple of questions.
1. Does Russia have that much Gold on hand?
2. If I can buy 100R for a dollar will Russia allow me to then buy Gold for 140,000R per ounce?
I think the answer is Nyet to both.
OK. Time for a reality check. Pegging the ruble to gold will not have any affect on the dollar as a reserve currency. Reserve status is based on the quality of a country’s debt. Debt spelled backwards is investment and no one in their right mind wants to invest in anything denominated in rubles and protected by the Russian court system.
Seems to me that Putin is simply converting his oil into gold.
Since Europe/France/Germany say they won’t pay in ruble, they can now pay in gold.
Eventually, Russia will have more gold than anyone else... which means they can crush the petro dollar at will if that hasn’t happened already... Thanks to Biden freezing Russian held US dollars.
Two comments:
1) A nitpicky comment is that there gold is measured in Troy ounces, which contain 31.1 grams, rather than ordinary ounces of 28.3. THat moves the calculations 10%
2) A lot of this argument hinges on whether or not the gold ruble is redeemable. Remember when the US dollar was worth 20 dollars per ounce, but the gold window was closed? Russia will have the same issue here if they do not establish and honor gold redeemability.
Russia Pegs the Ruble to a Bottle of Vodka.
There fixed it.
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“Currently, the FOREX rate for Rubli to Dollari is around 100:1”
In fact it is 83 to 1 right now.
The petrol dollar has been on the way out for 10 years. Gold backed currency is going to be the new norm. The US will very shortly be on the new US note which will replace the dollar and will be backed by gold.