Checkmate grandmasters Putins golden trap

a reply to: burdman30ott6

Dont worry shale gas and TTIP will save us, LOL.

originally posted by: Jamie1
I would put little stock in this article.

It's published by a financial site that's trying to sell gold. These types of sites have been claiming Russia and China have been buying gold for years, and that the price is going to go up.

How about putting stock into Reuters reporting Russia's gold?

"Dec 23 (Reuters) - Russia raised its gold reserves for the eighth month in a row in November, while Ukraine reduced its bullion holdings for a second straight month, according to International Monetary Fund data released on Tuesday.

Russia, the world's fifth-largest holder of bullion reserves, raised gold holdings by 18.753 tonnes to 1,187.493 tonnes last month."
www.reuters.com...

originally posted by: burdman30ott6
a reply to: Dabrazzo

Russia is the second largest oil exporter in the world currently prior to this current hiccup, exporting 5 million barrels per day of crude and they were the largest natural gas exporter in the world, providing about 20% of the world's gas imports. The world would survive, so that statement was certainly overdramatic, but there would be some serious changes needed and some significant pain felt if Russia's supplies were cut off to the world.

Also remember that Russia will be better off keeping all that extra oil and gas for themselves to use. Russia exports way more stuff than they import in return and has done for more than a decade. They give the rest of the world stuff in exchange for? Other countries promises to pay something back one day! The world owes them big time.

"Russia runs regular trade surpluses primarily due to high exports of commodities like crude oil and natural gas."
www.tradingeconomics.com...

originally posted by: wdkirk
As of 2014 no nation uses a gold standard as the basis of its monetary system, although many hold substantial gold reserves.

Also there is not enough gold currently mined and owned to cover ALL of the nations of the world currencies to support a change back to a gold standard.

The more gold in play, the less it will be worth so mining more gold will devalue it.

chess player he is not.

Now that's just silly, there is only not enough gold at the current paper market price, but gold is arbitrary, it can be priced at any level to fit the circumstances. Also countries that want reserves only deal in physical gold, the paper market price is not relevant to them.

From this Wikipedia below which is scarcer, paper or physical gold?

"The average daily volume of gold and silver cleared at the London Bullion Market Association (LBMA) in November 2008 was 18.3 million ounces (worth $13.9 billion) and 107.6 million ounces (worth $1.1 billion) respectively. This means that an amount equal to the annual gold mine production was cleared at the LBMA every 4.4 days"
en.wikipedia.org...

Global gold mining adds about 1.5% per year to the total stock of above ground gold, mining gold does not determine it's price, the paper markers do that. Mining does not determine the value or utility of gold either, the current holders of the physical stock do that, they hold and keep off the market 98.5% of the world's gold each and every year.

When there is a large amount of turbulence in currency, balance of trade and paper gold markets the value of having physical reserves becomes very apparent. By then it's too late to buy physical at the current paper price, Putin seems to be moves ahead in this regard, well played Vlad.

This is pretty funny stuff more Russian state sponsored propaganda about how chessmaster Putin has a brilliant plan to destroy the west or something. lol.

Let's look at the score card so far. Economic damage to the west - zero. Economic damage to Russia - FUBAR currency and stock market have collapsed and are in freefall, Russian economy FUBAR, unemployment rising rapidly, standard of living dropping rapidly. Great plan.

Russia and Putin are becoming irrelevant and a few years more of this and they will start to resemble North Korea. Putin is a billionaire and obviously couldn't care less about average Russians.

a reply to: inthewinterdark

How about putting stock into Reuters reporting Russia's gold?

No-one is saying that Russia isn't buying gold, it's just that it really doesn't make much difference. If Putin were to peg the ruble to gold it wouldn't stabilize the currency, it would lead to rampant deflation.