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To: PK1991

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.


50 posted on 03/30/2022 5:51:24 PM PDT by Pearls Before Swine
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To: Pearls Before Swine

Or when the price of gold was $35 in the Nixon years?


51 posted on 03/30/2022 5:52:53 PM PDT by Pearls Before Swine
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To: Pearls Before Swine

Not sure what they are planning about direct redeemability, but Russian banks sell gold at the window. You used to have to pay a 20% VAT if you took physical possession (but could keep it in a gold-gram-denominated account without the tax), but the tax was dropped a week or two ago. I just checked Sberbank, and they currently quote a 5572/4872 (buy/sell) spread for gold.


71 posted on 03/31/2022 10:39:10 AM PDT by billakay
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