The Central Bank of Russia is buying gold at a fixed price. Russia is a major gold exporter. It's their third largest export. They did remove the VAT on Gold but they are NOT backing their currency with Gold as of yet.
They (Russian Central Bank) do appear to be stacking gold but one can also argue that they are doing that because miners produce so much and the LBMA (London Bullion Market Association) has removed Russian producers certifications. This makes it impossible to sell gold produced AFTER the removal of certifications through London which is highly liquid. This is mostly due to sanctions.
So for now, they are not backed by Gold.
Too many people spreading that shit that don't understand how it works or what's going on.
The important dynamic at play is not the gold necessarily, but the viability of the Russian Ruble in competition with the United States Petro Dollar. If Russia can strong arm countries like China, India, and Pakistan into trading Gold or Rubles in exchange for Oil, that will spell certain doom for the USD.
Regardless of the backing of gold or not, the dominoes have begun to fall that will ultimately lead to the demise of the USD as the world's foremost debt note. When that happens, we will experience a depression level event in America.
I agree. I described what is actually happening via their banks and purchases because the headline "RUSSIA RUBLE BACKED BY GOLD" is fucking annoying and not true lol
If they set a floor at which they would buy (they did), and they buy their own gold at that floor (they will) and allow citizens to buy internally at that plus spread (they do), then they kind of have pinned underlying value to fiat via gold
Until 10 rubles can buy a candy bar, that's when I'll believe it.
You wanna see a healthy currency? How about the USD?
When a candy bar costs 25 cents, that's when you'll know a currency is headed towards healthy.
At 5 cents per candy bar, that's when you know we've fixed inflation.
Right now we're at about $2.00 a candy bar. It's way past doomsday for the dollar. Something has to give, and I suspect a barter system is closer than a gold-backed dollar.
I'm not being a doomer, just a realist. You can't buy bread with gold, no one has any idea what it's worth, even if the banks weren't tampering with the price of it. Gauge things in terms of how many candy bars or burgers it's worth to you, and then you'll be thinking in terms of actual worth.
Is a coffee mug worth about 2 burgers to you? Good, then stock up on coffee mugs.
That's never going to happen. The reason why Gold is seen as a currency is because it has utilitarian purposes in industry (generally) plus the fact that it's an established metal/currency to nearly all human beings and markets. We're never (never say never I know) heading to an economy where you trade items for other items.
We are always going to have a central form of currency OR something universally seen as valuable. Even if a conventional WW3 was to erupt, financial systems would still be up and running and currency of some sort would exist. In that case, it would be something like gold or a digital currency IF the internet were to remain in tact.
https://m.youtube.com/watch?v=D_x8VswuLwU
Value is in the eye of the beholder. Just sayin.
u/sleepydude isn't wrong. I'd say a full quarter of my income has been in barter for years now. Hell yeah I'll fix your porch for that old car 😁.
You're thinking a time when there is no government, no economy and no form of currency. That is end of the world shit lol. Putin is thinking an operational government with a functioning society but using gold backing their currency. No one is heading to "trade a cup for toothpaste" times lol. That's ridiculous.
What happened when Weimar collapsed?
What did it take to buy bread?
This analysis is correct. Nixon said as of 8/15/1971 you could no longer redeem any currency for gold at a fixed rate. That hasn't changed, but Putin is only one or two steps away from changing it now since he is accepting gold for his currency at a fixed but appropriately low rate. A little stabilization and he may suddenly open the gold window. After 50 years one had better be exceptionally well-prepared for the consequences; but Putin's team is.
That's one joke I cracked up at when watching rick and morty.
Sleep-deprived nailed it. Candelaria is a perfect example. If USD was still backed with gold the only thing effecting prices would be supply and demand. A bad peanut crop could decrease the supply of snickers.
You are correct, it's more complicated then that, but it's well on its way to being gold backed https://youtu.be/eEcc-8rX3bI