No saying anyone would do this, since I think the dollars days are numbered, but an interesting mathematical exercise.
Of course, this number assumes no overheads in the transactions etc. so would be less, but still.
Start: $100,000
$1 = 83.59R
$100,000 = 8,359,000R
Fixed price for Gold in Rubles = 5000/g
8,359,000/5000 = 1,671.8g of Gold
Spot price for gold $62.52/g
1671.8g * $62.52 = $104,520.94
That's a 4.52% gain.
One problem with your theory. So far, the Russian government has guaranteed to PURCHASE gold for 5000 RUB. They have made no such announcement about their willingness to SELL gold for 5000 RUB.
It is not an actual peg yet. It will probably get there eventually, but not yet.
Fair point :)
I would have loved to buy up rubles and Russian stocks while there are in the gutter a few weeks ago but of course us plebs are blocked from doing so because of sanctions while you know the banksters were finding ways to profit on this in the background.
You could also go to your bank and withdraw money as physical nickels and make huge profits with no risk. 100 dollars of nickels is worth 160 dollars of copper and nickel.
http://coinapps.com/nickel/us/calculator
Wow, that is a shocker.
Also shocking..
correct. illegal to melt but would you melt your pre 1965 silver dimes and quarters? if you could go back to 1964 and exchange 100 dollars cash for 100 dollars of silver coinage you would. that's where we are now.
I would, but I'm in the UK and we don't have time travel yet.
If we did, I'd get a load of pre-1992 1p and 2p pieces, because they are almost pure copper. An old 2p piece is worth about 4.5p apparently.
Wow.
Still can’t believe gold and silver are not skyrocketing. I guess with premiums silver is over 30 now.
It won't skyrocket until the banks lose their manipulative control over the paper price of metals. They've been busted a number of times over the years and paid billions in fines, but still do it. The same way the traders got busted for short-selling GME and AMC, they got busted for short-selling nickel on the London Exchange- so much so that the trading was halted for several weeks last month. Gold and silver will soon have their day which is why the banks are at this very moment moving massive amounts of the physical into their vaults in preparation.
Well, if we assume a fixed exchange rate between the dollar and ruble of 83.59, it values gold at $59.81/g if I got my maths right.
So, the question is, why isn't gold dropping to meet the dollar and devaluing the ruble? Could it be the ruble is now stronger than the dollar?
Equilibrium would be an exchange rate of $1 = 80R