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“Faith Many People Have In Gold Is Rising As Instability Increases”
“Faith Many People Have In Gold Is Rising As Instability Increases”
- Inflation fears have caused a surge in Russian demand for gold jewellery
- Currency depreciation and falling wages weighing on average Russians
- Classified ad websites booming as Russians try to raise cash
- Ruble has fallen more than 35% against gold in recent months
- Ruble today … other fiat currencies tomorrow
Gold in Russian Ruble - 1 Year
Currency depreciation, inflation fears and falling wages are weighing on average Russians and leading them to buy gold and silver bullion and some are making "unusually large purchases" of gold jewellery.
A large Russian chain of jewellery stores, Adamas, with 250 outlets across the country saw "same-store sales climb 40 percent in December," according to a report from Bloomberg.
The role of gold as a store of value in times of high inflation is well known to Russians. "Many are still scarred by the memories of the ruble devaluation of 1998, which sent the annual inflation rate over 100 percent several months later" according to Bloomberg.
Inflation rose 17% in February against 6% for the same period in 2014. Since the economic crisis in Russia took root gold price in roubles has risen substantially.
Gold in Russian Ruble - 5 Years
Between October and early January gold surged from around 50,000 roubles an ounce to over 87,000 roubles an ounce.
However, with the price of Russia's main exports - oil and gas - stabilising at lower levels, the rouble has also stabilised following a collapse of 46% last year. Gold has since retraced some of its gains and now trades at 70,000 roubles - up from below 45,000 in June 2014.
However, the crisis does not look like ending any time soon. People in Russia continue to struggle. Real wages have declined 9.9% in February when compared to the same time last year. The Russian government is projecting a 3% contraction in the economy this year.
Bloomberg report on how for Avito - Russia's largest classified ad website - business is booming as Russians buy and sell used goods to raise cash and make ends meet. It has seen a 43% increase in goods for sale since the crisis began.
Gold in Russian Ruble - 20 Year
Canned food businesses are also thriving - sales are up 10% - suggesting that Russians fear sustained crisis and potential supply chain disruptions. War frequently leases to supply chain disruptions and shortages of food, energy and staples.
Russian people suffered many economic crises over the course of the past century and the protective function that gold can play is understood by many.
“The faith many people have in gold is rising as instability increases,” Adamas executive director Maksim Vainberg said in an e-mail. “Unlike home electronics, gold jewelry can be always resold.”
The depreciation seen in the ruble is likely to be seen by other fiat currencies in the coming months and years as competitive currency devaluations and currency wars intensify.
Click here in order to read GoldCore Insight –
Currency Wars: Bye Bye Petrodollar – Buy, Buy Gold
MARKET UPDATE
Today’s AM LBMA Gold Price was USD 1,201.50, EUR 1,110.91 and GBP 811.11 per ounce.
Yesterday’s AM LBMA Gold Price was USD 1,181.25, EUR 1,099.50 and GBP 800.36 per ounce.
Gold in USD - 1 Month
Gold rose 1.69 percent or $20 and closed at $1,204.20 an ounce yesterday, while silver gained 1.86 percent or $0.31, closing at $16.96 an ounce. Overnight in Singapore, gold prices went sideways prior to very slight gains in London this morning.
Gold is hovering above $1,200 an ounce after the nearly 2 per cent gain yesterday, its biggest single-day rally since January 30.
Gold priced in euros is down 0.4% this morning, underperforming spot after posting it biggest quarterly rise since Q3 2011 in the first quarter, rising 12.7%. This was largely due to a particularly strong performance in January, when it rose 16.2% prior to weakness in February in particular.
Gold ETFs posted their first net inflows in Q1 since Q4 2012 due to heavy inflows in January. Although March saw net outflows of 55.7 tons on dollar price weakness.
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Do these fucks not understand that when gold leaves the ETF's, it means people want gold and not paper gold? And that is gold positive!
Please, ya'll see the drought in California, which is being stuffed with ever more immigrats (third world rats who parasitically deny your children their future opportunities while the liberals give them so-much-love)?
A tomato will be worth more than gold by the end of this year. Grow veggies, reap the rewards!
I cant forget buying gold for 300.00 OZ So I know where the bottom is.
Damned barbarian's and that useless yellow metal. Don't they know that dollars are the way to go?
OT. Tee Rak is witholding conjugals at only one dessert course on Jesse's site.
Fix it
Kop khun krap.
Yay, charts! Keep talking that book. I'm a huge buyer...
at $724.
We aren't there yet.
Now only if my mortgage balance was in Rubles. .....
"War frequently leases to supply chain disruptions and shortages of food, energy and staples."
What does that mean?
This internet thing is getting harder to read everyday. Missing words, weird sentences, no punctuation. Its getting as bad as computer code....gibberish. Even the bots don't use spell checkers, and THAT is just plan wrong.
What it means is "buy gold from us so we can make more money."
"leases" should be leads. ZH leads the entire developed univere in spelling errors.
"univere"
Ha ha....i see what you did there.
Elsewhere, just finished 2 painful hours bleaching and scrubbing the shower tiles so I can't ~see~ the mold....then picking out bad grout so I can replace it tomorrow. Is this all there is to voluntary unemployment? Somewhere in my wretched future I might go look for work. How hard is picking cotton compared to shower mold?
Everybody is at work so I have to entertain myself with a much neglected todo list. Actually I don't have any neighbors, since I live in the sticks, so its really ok.
However, I've finally figured out how to play the Cello STANDING UP, and it is totally awesome. Wandering around the estate blasting out notes (gotta wireless pickup that sends it back the amp far far away).
This guy is classically trained, but he rediscovered the joy of the cello and singing crazy songs with kids.
https://www.youtube.com/watch?v=C7bweOKtC7c
Enough babbling, but it is better than swearing at myself.
Yup, it is planned wrong... now for the right plan
Probably meant "War frequently leads to..."
Your built to low The fast ones go over your head You got a hole in your glove I keep pitching and you keep missin'um. You got to keep your eye on the ball. I almost had a gag. Son. Joke that is.