Why is setting a Fixed Price for Gold in Rubles significant?
By offering to buy gold from Russian banks at a fixed price of 5000 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 (5000 / 62) = about 80.5, and markets and arbitrage traders have now taken note, driving the RUB / USD exchange rate higher.
So the ruble now has a floor to the US dollars, in terms of gold. But gold also has a floor, so to speak, because 5000 rubles per gram is 155,500 rubles per troy ounce of gold, and with a RUB / USD floor of about 80, that’s a gold price of around $1940. And if the Western paper gold markets of LBMA / COMEX try to drive the US dollar gold price lower, they will have to try to weaken the ruble as well or else the paper manipulations will be out in the open.
Additionally, with the new gold to ruble linkage, if the ruble continues to strengthen (for example due to demand created by obligatory energy payments in rubles), this will also be reflected in a stronger gold price.
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I encourage you to read the entire article concerning the relationship of Russia’s ruble, gold, oil and other commodities. Russia has pegged their ruble to the price of gold. Our petrodollar is “backed” by the full faith and credit in the United States. As the world shifts to a real currency, the dollar will be devalued very quickly. Buy barterable goods, food, gold and silver before your fiat currency becomes toilet paper like the Continental.
David DeGerolamo
The truth is that which, although you ignore it, doesn’t go away
This isn’t going away, no matter how much the US/EU media and governments want to ignore it. Once China does the same it will be impossible to ignore. A mortal wound to the petro-dollar system.
This is one piece of evidence that leads me to think that Putin is legitimately at war with the NWO / Davos bunch. If anything is hated by the international banksters it is gold. Honest government is impossible without honest currency.
I am still skeptical of this being the case of WW2 man. WHAT IF… What if he was chasing these same bunch of folks back then?
Is that not a possibility at all? Idk… feel like learned Jack about the truth now.
You know things are BAD when we are looking at the Soviet Union, and wishing we had a pResident with both brains and balls.
Smfh