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What The Russian Ruble Gold Peg Means To Bitcoin
The Coming New World Order Gold Standard Paradigm
Looking back in two years, the Russian Ruble gold peg may well prove to be as significant as Nixon closing the gold window in 1971. This event essentially reverses what was done a generation ago.
The nuts and bolts are that on March 28, 2022, Russia pegged the ruble to gold at the rate of 5000 rubles per gram through June 30, 2022.
In U.S. dollar terms, this means a gold price of $1,865.00 per troy ounce is about $60.00 per gram. So the peg is about $1,600.00 per troy ounce, which is significantly below the price of gold both today and at the London P.M. gold fix of $1,937.05 on March 28th, the day of the peg.
This peg was hardly arbitrary or happenstance and did not appear in a vacuum. It is a practical reaction to Western legacy crony capitalists policy, making their presence known on March 7th when both London (LBMA) and New York (CME Group) metals exchanges stopped accepting new Russian gold bars as good delivery de facto in a lame attempt to sanction Russia for its invasion of Ukraine on February 24th exercising its long announced version of the Monroe Doctrine opposing the West’s arming its neighbors.
The 17.5% discount offers a profitable arbitrage for selling non-Russian gold for Russian gold allowing for transportation and refining into good delivery bars in London or New York.
This explains the recent gold price drop narrowing the Russian gold peg to a discount of 14%.
On April 7th the Central Bank stopped the peg and changed it to a “negotiated” price. The significance here is not the reneged peg, but that a peg is being seriously considered. It remains unclear what is going on behind the curtain.
