Can you invest in Russian currency? Russian Central Bank Bets On Gold
Russia Strikes Back!
The Russian Central Bank has announced that the ruble is now tied to gold at 5000 rubles per gram of gold.
Furthermore, there are 28 grams in each ounce. In addition, 28 grams for 5,000 rubles per gram is 140,000 rubles.
If the rubles are tied to gold at 5000 rubles per gram & there are 28 grams per ounce. It means that an ounce of gold would cost $140,000 rubles, then the conversion into US dollars means that gold costs $1400 per ounce. When using the rubles, instead of $1,928 by ounce using U.S dollars.
This effectively means Russia just wiped out about 30 percent (30%) of the U.S dollar worldwide when it comes to gold ingots.
Could this be the financial equivalent of detonating a nuclear bomb?
This has been cause for people all over the world to literally throw their money on the Ruble, disregarding dollars & euros to do it.
The last person on this planet to try to support a currency with gold was Muammar Quadaffi of Libya. That did not work out well for him.
As at 8/4, the FOREX rate for Rubles to Dollar was around 100:1
5,000 Rubles equal a gram of Gold. And oil 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 & much less use for them. And will want to start downloading them in favour of something more stable; something that holds its value.
This means countries like Japan will start unloading their dollar debt as soon as possible. They’ll move to more stable values like the Ruble.
Lastly, this will have a DE-flationistic effect in the long term. However, in the short term, it could trigger immediately worse hyper-inflation for the USA – worse than they already have.
