by Tom Luongo at Gold, Goats ‘N Guns
I don’t think everyone has yet caught the significance of Russia announcing they are putting a floor under the price of gold. But, to be clear, Russia just broke the paper gold suppression scheme.
On Friday the Bank of Russia announced:
BREAKING NEWS:
THE RUSSIAN CENTRAL BANK WILL RESTART BUYING GOLD FROM BANKS AND WILL PAY A FIXED PRICE OF 5,000 ROUBLES PER GRAM BETWEEN MARCH 28 AND JUNE 30 pic.twitter.com/Q1kTSfzAIm
— Gold Telegraph
(@GoldTelegraph_) March 25, 2022
RUB5000 to the gram at an exchange rate of 100 RUB/USD implies a $1550 per ounce gold price.
For a few days previous to this announcement, which they knew was coming, The West was running around with multiple bits of legislation to try and keep the Russians from selling their gold.
The G7 think the sanctions are hitting so hard that Putin will be forced to sell his gold to evade sanctions to pay for things. They are literally running a script in their heads that is not actually playing out in the real world.
But, whatever, Neocons never met an ugly stick that they didn’t want to use to beat someone over the head with. Too bad all they’re doing is hitting a rubber tire.
Boing!
Because here’s the gig, Russia won’t be selling any gold. They’re buying it.
These are supposed to be the architects of the global monetary system and you would think they are the ones that understand it the best. But, clearly they do not.
What they think they understand is that they still control the flow of commodities around the world through price suppression schemes on the CRIMEX, LBMA and ICE.
They do not.
Ultimately, ‘outside money’ trumps ‘inside money.’
Austrians, like myself, have always understood that eventually Inside Money [money that exists within the financial system] fails because it is ultimately nothing more than a Ponzi Scheme built on top of Outside Money — money that exists outside the financial system, like commodities and bitcoin.