Home › 6a) Gold & Monetary Metals › 6a.) GoldCore › The Russian Gold Standard
Permanent link to this article: https://snbchf.com/2022/08/flood-russian-gold-standard/
Donate to SNBCHF.com
Donate to SNBCHF.com Via Paypal or Bitcoin To Help Keep the Site Running
Please consider making a small donation to Snbchf.com. Thanks
Bitcoin wallet: bc1qa2h6hgd0xkuh7xh02jm5x25k6x8g7548ffaj3j
Receive a Daily Mail from this Blog
Live Currency Cross Rates
On Swiss National Bank
-
USD/CHF stays above 0.9100 nearing the highs since October
10 days ago -
SNB Sight Deposits: increased by 3.4 billion francs compared to the previous week
12 hours ago -
Pound Sterling falls back as upbeat US Retail Sales strengthen US Dollar
11 days ago -
Canadian Dollar remains vulnerable after strong US Retail Sales
11 days ago -
2024-04-09 – Martin Schlegel: Interest rates and foreign exchange interventions: Achieving price stability in challenging times
17 days ago
Main SNB Background Info
-
SNB Sight Deposits: increased by 3.4 billion francs compared to the previous week
12 hours ago -
The Secret History Of The Banking Crisis
2017-08-14 -
SNB Balance Sheet Now Over 100 percent GDP
2016-08-29 -
The relationship between CHF and gold
2016-07-23 -
CHF Price Movements: Correlations between CHF and the German Economy
2016-07-22
Featured and recent
-
Chapter 9. From Taxes to Trade, More Secession Means More Freedom
-
Woods Exposes the Federal Reserve System
-
Increase of 1.7% in nominal wages in 2023 and 0.4% decline in real wages
-
SNB returns to quarterly profit thanks to Swiss franc weakness
-
The Danger of the West’s Neglect of Individual Rights
-
The Problem with Microlibertarianism
-
Javier Milei vs. the Status Quo
-
Kentucky Becomes 45th State to End Sales Taxes on Gold and Silver
-
Retail Sales Data Suggests A Strong Consumer Or Does It
-
SNB Sight Deposits: increased by 3.4 billion francs compared to the previous week
More from this category
- Retail Sales Data Suggests A Strong Consumer Or Does It
26 Apr 2024
- Kentucky Becomes 45th State to End Sales Taxes on Gold and Silver
25 Apr 2024
- Javier Milei vs. the Status Quo
25 Apr 2024
- The Problem with Microlibertarianism
25 Apr 2024
- The Danger of the West’s Neglect of Individual Rights
25 Apr 2024
- SNB returns to quarterly profit thanks to Swiss franc weakness
25 Apr 2024
- Increase of 1.7% in nominal wages in 2023 and 0.4% decline in real wages
25 Apr 2024
- Woods Exposes the Federal Reserve System
25 Apr 2024
- Privatize Driver’s Licenses
24 Apr 2024
- Driver’s Licenses Waive Personal Responsibility and Contribute to Disorder on the Road
24 Apr 2024
- Chapter 2. Political Anarchy Is How the West Got Rich
24 Apr 2024
- Chapter 6. Nationalism as National Liberation: Lessons from the End of the Cold War
24 Apr 2024
- Chapter 14. Why “One Man, One Vote” Doesn’t Work
24 Apr 2024
- Chapter 9. From Taxes to Trade, More Secession Means More Freedom
24 Apr 2024
- Chapter 4. Why the Classical Liberals Wanted Decentralization
24 Apr 2024
- Chapter 12. When It Comes to National Defense, It’s More than Size that Matters
24 Apr 2024
- Chapter 10. If California Secedes, What Happens to Locals Who Opposed Secession?
24 Apr 2024
- Chapter 7. A Brief History of Secession Plebiscites in Europe
24 Apr 2024
- Chapter 15. Democracy Doesn’t Work Unless It’s Done Locally
24 Apr 2024
- Chapter 8. Why the US Supports Secession for Africans, but Not for Americans
24 Apr 2024
The Russian Gold Standard
Published on August 28, 2022
Stephen Flood
My articles My videosMy books
Follow on:
It is becoming increasingly clear that UN Nations are realising that it is very difficult to isolate a country that is already a global power. And not just a global power in terms of the military but also in terms of the world’s dependence on its energy exports.
However, Russia’s energy exports are not the only thing the West benefits from. One little known fact about Russia is that its highest non-energy export is gold, exporting around $15 billion of gold bullion last year.
Also, when the West really starts annoying Russia, how does Russia respond?
It decides it will find a new way to manage its precious assets, and ensure that it’s to a level respected by its major trading partners, well away from the influence of the US dollar.
One more step in a New World Order?
Russia announced a proposal to create a new international standard for trading in precious metals. The Moscow World Standard (MWS) with the goal of the MWS becoming an alternative to the LBMA.
This proposal is the latest in Russia’s desire to create independence from NATO countries and their associated institutions and currencies.
Moreover, the sanctions against Russia over its invasion of Ukraine continue to mount.
In March the LBMA suspended the accreditation of Russian precious metals refiners. Additionally, at the G7 meeting at the end of June the G7 countries imposed a ban against any Russia-produced gold entering the UK, Canada, US, or Japan.
Gold is Russia’s largest non-energy export estimated to have added around the US $15 billion to the Russian economy in 2021.
With LBMA at the heart of global precious metal trading being located in the UK, this shut Russia out of formal international markets for gold and silver. The additional sanctions also included an asset freeze of the Russian state-owned Sberbank.
Among other sanctions, Russia’s banks were cut off from the SWIFT processing system in March 2022. See our March 3 post titled SWIFT Ban: A Game Changer for Russia?
The mounting sanctions have expedited Russia’s (and other countries such as China, Saudi Arabia) desire to de-dollarize and create systems that do not rely on G7 countries’ institutions. Russia and China have both been very vocal about their desire to elevate the U.S. dollar as the reserve currency.
Moreover, the main problem with this plan is that there is not a solid alternative.
However, proposals of a multi-currency system along with actions such as Russia demanding payment in rubles are chipping away at the US dollar’s role. (For more on Russia’s de-dollarization plan, which includes increased gold reserves see our post from December 9, 2021, titled Russia: A Prominent Player in the Global Gold Market.)
The latest proposal is another of these wedges that will chip away at the institutions in place.
According to press reports, the proposed Moscow World Standard would be a specialized international brokerage headquartered in Moscow.
However, the price-fixing committee would include central banks from the Eurasian Economic Union (EEU) which includes Russia, Kazakhstan, Belarus, Kyrgyzstan, and Armenia.
Membership would then be available to large gold players including China, India, Venezuela, and South American Countries such as Peru.
A new gold standard?
Under the MWS system proposal, the price of precious metals is fixed, either at the national level. In each key member countries’ currency or at an aggregate level. This is with a new currency such as the BRICS currency proposed at the BRICS conference also held at the end of June.
A New Currency proposal to rival the U.S. Dollar
The leaders of the five major emerging economies, Brazil, Russia, India, China, and South Africa proposed creating an international reserve currency to rival the U.S. dollar and the IMF’s SDR (Special Drawing Rights).
Moreover, Putin is quoted as saying that
Additionally, other countries that are currently considering joining the BRICS group are Turkey, Egypt, and Saudi Arabia.
Putin is quoted as saying that
He went on to give the example that Indian retail chain stores would be housed in Russia, and Chinese cars and hardware would be imported regularly.
Also, see the April 20, 2022 post titled The Friend-Shoring’ of Gold – A New World Order? Apparently what is good for Yellen is also good for Putin since he has his own circle of friends.
Moreover, don’t let the reserve currency deceive you on the gold price.
Also, one final comment on currencies and gold. The US dollar has surged this year for reasons related to its reserve currency status. (See David Russell’s interview on August 4 with Brent Johnson – The Dollar Milkshake Theory Explained).
The chart below shows gold’s performance in year-to-date in terms of other major currencies, which are all positive.
.
Follow on:
No related photos.
Tags: Business,Commentary,Economics,Featured,Finance,Geopolitics,Gold,gold price,gold price news,gold price prediction,gold price today,gold standard,inflation,investing in gold,News,newsletter,Politics,Precious Metals