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Russia May Retaliate Sanctions By Demanding Payment For Exports In Gold
DAILY PRICE REPORT
Today’s AM fix was USD 1371.00, EUR 982.30 and GBP 821.70 per ounce.
Yesterday’s AM fix was USD 1355.75, EUR 977.47 and GBP 817.01 per ounce.
Gold rose $20.10 or 1.5% yesterday to $1,367.10/oz. Silver surged 47 cents or 2.2% to $21.28/oz.
Putin and a Gold Bar
Gold extended gains to a third session today, reaching fresh six month highs as investors hedged geopolitical risks and Chinese economic slowdown fears. Gold hit $1,375.20, its highest since September 10 and has gained 14% so far this year on global geopolitical and macroeconomic risk.
A significant bond default in China and a weak exports report has sent equities and base metals lower in recent days. More data overnight showed China's economy slowed sharply in the first two months of the year, with growth in investment, retail sales and factory output all falling to multi-year lows.
The biggest factor driving gold prices at the moment is the increasing tension between the West and Russia over Ukraine. The EU agreed on a framework yesterday for its first sanctions on Russia since the Cold War.
Gold in US Dollars - 1 Year (Bloomberg)
This is a much stronger response to the Ukraine crisis than many expected and a mark of solidarity with Washington. Senior American military officials have been making hawkish sounds and warned that they are ready for a military response to Russia.
Russian government officials and businessmen are bracing for sanctions resembling those applied to Iran according to Bloomberg. Should Russian foreign exchange reserves and bank assets be frozen as is being suggested, then Russia would likely respond by wholesale dumping of their dollar reserves and bonds.
In retaliation, Russia could opt to only accept gold bullion for payment for their gas, oil and other commodity exports. This would likely lead to a sharp fall in the dollar and a surge in gold prices.
Currency wars could soon take the turn for the worst that many of us have warned of for some years.
Gold’s technical picture is increasingly positive after breaking resistance at $1,360/oz and the next levels of resistance are at $1,376/oz and $1,434/oz, the high from August 28th last year. In the short term, gold may be vulnerable to some profit taking and a period of correction and consolidation.
Silver Coin Sales Increase 11% as Price Declines 33% YoY
U.S. Mint sales of Platinum Eagle bullion coins rose by 200 Tuesday after advancing 8,500 on Monday, the first day of issue since 2008. Also higher on the day were sales of Silver Eagle coins. Sales rose 388,500 to above 1.1 million for the week, surpassing last week’s total.
U.S. Mint Silver Eagle Coins Sales and Silver in U.S. Dollars - Jan 2009 to March 2014 (Bloomberg)
February silver coin sales rose 11% yoy as prices fell 33% (see chart). Silver coin sales were down 22% from January. January produces sales spikes as collectors buy coins bearing the new year's date and bullion wholesalers secure their inventories of new year coins for the year ahead.
Silver prices have risen more than 9% ytd after falling 18% during the final five months of 2013. A record 42.6 million silver coins were sold in 2013, up 26% from 2012.
The American Eagle 1 ounce Silver bullion coin is the official U.S. national silver bullion coin, and is the world’s most widely sold 1 oz silver coin. In fact, over 335 million Silver Eagles have been sold since 1986.
Download your Comprehensive Guide to the American Silver Eagle here.
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What the hell is Russia waiting for? SHUT UP AND DO IT!
Blow this fraud candy-stand retards call a market straight to hell.
Correction.
lcn.freedgold.com/
Apologies!
Seminal work on how this will play out.The fact is Iran,Russia,China and Venezuela have all been conducting trade in Oil for Gold...prior to April last year and at an accelerated pace since last November. See. lcn.frredgold.com/. The very first post from March 2012 on Iran Oil and Gold explains beautifully what we can expect to see as these current events unfold.
Putin in the picture above:
"Yes - I like this gold. We get paid in gold and euros."
It is not just Russia's nat gas - it is all the oil they export.
SO is there a way to rehypothicate oil after it is burned? Can we rehypothicate gold that has already left the building?
Limitless, just ask the Federal Reserve.
Dont be surprised if there are 10,000 US oil engineers already in Saudi and the Arab League making sure all their equipment is in order if they have to double output to neutralise Russia demanding gold for oil and gas. Be even less surprised when they try to make a cosy deal with Iran to welcome them back in the fold.
(forgetting Iran is an old ally of Russia and a new friend of China)
The Saudi oil fields are shagged out. The Saudis are being treated like red headed step children.
Boy is this "little shit shack" coming apart and fast!
What a fun watch!!!
Who needs a shit-shack when the Federal Reserve will print whatever "truth" it takes...
China has printed three times the amount of the US....
That has to count for something bad...
GOLD! - Everywhere you want to be. (TM)
Sheetcoins? We don't want no stinking sheetcoins.......
Cue phonystar
It all makes procuring oil to support
the dollar all the more important
while simultaneously lifing gold.
Unfortunately it's a formula for
accelerating ending the human
habitat.
Though it's really a smart game
of chicken if you want to lift
oil and gold prices.
https://duckduckgo.com/?q=russia+gold+production
Can Putin have the gold fix in mind?
Does it matter when Chinese pay a
radically different price for
physical gold?
But surely Putin would rather
have the pipelines.
It's obvious you can't say
oligarchs and family values in
the same sentence unless you're
saying what are opposites.
Is there some way the rest of us
can cut a deal replacing division
and pyramidal economics with
increasing stages of democracy,
international cooperation and
legitimate process informed markets
democratically based?
The real power of the US is the dollar and THAT is what is being challenged here. That too is why this is soooooo dangerous. If Russia proves that the power of the dollar can be subverted.....then all hell could brake loose. Make no mistake, the US military serves one purpose and ONE purpose only. To back the power of the dollar and force it on EVERYONE. For Putin to demand gold would be equal to sinking a US war ship in the Black Sea. War would be inevitable.
Let's see, total Gazprom exports for 2013: $65,253,000,000
EU gold holdings: 347,000,000 oz
Present gold value: $1,370/oz
So it would take 47,630,000 oz per year at current price for all of Russia's gas. The EU would use up all their gold in 7.3 years (very rough estimate as Europe does not get all of the Russian gas).
Conclusion: do-able.
Well, I suspect that most of the gold claimed to be held by the EU, and the US, for that matter, is in fact not there.
But, if, in case, much to my surprise, there really should be the gold that the banksters claim, you can be sure, that for each unit of gold, there are over 100 title holders!
So this is going to end with a game of musical chairs. 125 dancers competeing for one chair! or worse!How do you fancy a game of russian roulette??
Just 124 bullets in 125 chambers! Fancy these odds? Neither do I. So, gold for me, is gold in the hand. Nothing else counts.
Putin must be laughing.
The rest of us should be crying.
Isn't that what got Ghadafi in trouble?
I would give a couple Silver Eagles to KNOW how much LIBYAN GOLD was liberated to be repatriated to Venezuela.
putin has nukes, o bum a fears putin as someone who is not on board the NWO train...Kerry's threats will be met by putin with action, Russia + China pushed closer, for us few american's get this=gold could make an historic move here, the pot is boiling and if I were putin I would already be in the gold markets buying to show the $'s weakness. anyone think this is not so? o buma just got punched in the nose and he can't believe it happened..on top of kicking openly homosexual out of the winter games, that O bum a can't forgive, his hate of a normal is over powering what little judgement he has.
Ghadafi didn't have nukes
And did have a lot of GOLD and Oil. Also in 2011 only 2 countries in the World had no debt, Brunei and .... drum role please .......LIBYA !!!
You either play their debt and death game or be ELIMINATED !!
Eliminated by who?
You know Russia has the most nuclear weapons and per-warhead the biggest ones, right? Even a 600 MEGAton SINGLE warhead, right?
<Trollface> Putin </Trollface>
http://www.silverdoctors.com/tag/jim-willie/
That is fine, we have plenty of gold here in the US and can just move some over to your side of the vault. After all it is quite a hassle to actually transfer is over there and who wants to take the risk of shipment overseas? Wouldn't wanna lose it in a tragic boating accident now would we?
Don't worry we've got your back and will hold your gold for safe keeping as long as we have to, no you can't see it because of reasons and stuff.... national security, I am sure you understand.
OK then gold needs to be revalued immediately to $55k per oz. LOL
Not completely inane; as a thought experiment, though, it has legs. How would it play out if in response to U.S. and E.U. sanctions, Russia's move was "We don't take no stinkink' dollars anymore." What the hell would Russia do if we seriously tried to isolate them? Would China support them? If the U.S. engages in open economic hostilities with a world power, it could seriously bite us in the ass.
1. Form a trading bloc with China-Iran and hit the off switch for Western Europe, also gleefully destroying the petrodollar with extreme prejudice. Zoloto-for-oil/natgas bitches!
2. Yes, they would. See the Chinese envoy's response to Merkel.
3. Yes. Yes it would.
Let's hope so. I for one would gladly share the consequences just to see the parasites go down.
Wow did you see that big black bear transform into a swan!
Payment in gold has been tried before. It was last practiced by France on a larger scale, and this for settling trade imbalances between France and The US. And it is still done between Turkey and Iran.
As Nixon slowly realised that the French wanted gold and not paper Dollars, he ended the convertibility of gold and US$. That was in 1971, and this event is most likely the cornerstone of most of the economic problems of today. It could also, in future hindsight I guess, be blamed for the wars we are about to experience?, if history is anything to go by.
If Russia forges ahead with demanding gold, it would be difficult to see how this should not affect the price of gold, and if a critical mass is attained, it could usher in a total and utter distrust of politics, laws, government and fiat currencies, not only on a local level, but on a universal level.
This has never ever been experienced before, and the consequences would be unpredictable but most likely more severe than people generally believe.
But let's see if it comes to that. It will eventually happen, no doubt, by all logic, it should have happened a while back, but the market can, and does stay irrational longer than most people expect. As usual.
>> This has never ever been experienced before, and the consequences would be unpredictable but most likely more severe than people generally believe.
This strikes at the heart of fiat currencies based on confidence and nothing else.
The US EU idiocy is mindboggling. First fund Nazis to stage a coup, then threaten Russia with sanctions because 89% of Crimeans want to secede. Then realise that rather than sanctions hurting Russia they are likely to backfire as Russia may ask for payment for its oil in gold, which you do not have as it was either stolen by the US (Germany) or sold to China. The next step is probably having lost all self respect watch as your economy slowly implodes and then explain to the electorate that it was not your fault....Brilliant!
Total horseshit
Ridiculous! There is NO way they would kill themselves by demanding gold for their exports. Whoever wrote this article has no clue about economic realities.
I agree it's not feasible long term or even medium term. But if the oil and gas stop flowing to Europe there will some mighty angry (and immobilized and cold) citizens who don't give a fuck about Crimea. Europe would break first. Hopefully.
Well they could just demand gold from Europe as payment for their gas, otherwise no gas. How long before Euro-peons say ok Unkle Putin, you can have Ukraine. They can still accept US Dollars or other currencies from their other partners. Yes this would hurt them some, but if I were Putin, it would be on the table.
There are 159 billions of dollars of US investment in Russia. Lets impose economic sanctions on their asses. What could possibly go wrong?
File this one under "You Wish"
I do, I do!
As long as they accept paper gold nothing will change, no one will notice. If they demand physical metal they will find no buyers, anywhere. There is no physical gold on planet Earth that is not spoken for.
I suppose this explains why the Ukraine shipped 40 tons of gold out to the United States a couple days ago. Pre-emptive chess move.
That Putin fella sure has a classic "Russian" look.
Have you seen him with his shirt off?
How much will Russia's exports fall if they will not accept US dollars or Euros for payment? No way they move all payment to gold.
The answer is not at all. Russia exports gas and oil and caviar and vodka. Ain't a chance in hell that the consumers of those things will not buy them. In the case of gas and oil, they have to buy them. The gold will flow East comrade.
Russia claims to be preparing for "Iran-like" sactions. Iran figured out how to settle oil sales in rupees, gold, wheat, etc., because we shut them out of the SWIFT network.
I strongly suspect that Russia and China have fully prepared for this contingency and are prepared to trade amongst their partners in RUB, CNY, or SDRs. Just because Russia cannot settle in USD doesn't mean that they won't accept CAD, CNY, RUB, BRB, etc.
If this currency war actually devolves into a balls-out currency war, I suspect we (as a civilization) will quickly figure out how to settle international trade in something other than USD. Remember, USD international settlement is a 70-year old phenomenom...
Putin - "We accept Bitcoin too"
Fonestar would be ecstatic.
The Euro is already partially backed by gold at market price.
He could just demand a combo of gold and Euros only to start a run on the dollar,plus
bring comex and the bullion banks down.No need for nukes.
The FedRes can print dollars, but they can't print Euros or gold.
Thats the crux of the US problem, not the UST's per se.
Partially backed by gold at market price.??
Where have you got that from?