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.
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.