GOLD 0.51% $1,391.7 gold futures

IS GOld about to get Pounded?, page-14

  1. 4,486 Posts.
    Well if Russia collapses then gold probably soars. It probably depends how it happens, but you used the word collapse not mine.
    I think you forget the army gets paid in roubles.
    Like any other nation he can just print more of them with the backing of additional gold reserves. So he can actually use increased gold reserves to lever the amount of roubles in circulation. Why sell something when you can probably lever off it 10:1 ?
  2. 6,142 Posts.
    lightbulb Created with Sketch. 450
    Correct. gold as a reserve asset is valuable when all other currencies go to crap. Vlad can't get hold of any new dollars so he has only a few options left. 1) Sell anything not bolted down that can raise $ i.e. commodities such as Oil and Nickel, 2) buy more gold with roubles to protect against falling rouble, which can then be levered to pay army/govt etc, 3) war and subsequent theft AKA Third Reich stuff.
    The way I see it, options 1 & 2 will be used before the option is resorted to. Don't forget winter is coming up in Europe. If he turns the gas taps off, we might have a few issues...
 
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