RE:Gold and the Russian RubleSPROTT MONEY ARTICLE - "RUSSIA PUT IN GOLD"
https://www.zerohedge.com/news/2022-04-08/russia-put-gold "
If Gold is pegged to the ruble at 5000 per gram, that’s equivalent to 156k rubles per troy ounce of Gold. By taking 156k and dividing it by the USD/RUB exchange rate, you get the dollar price of Gold. Assuming the USD/RUB is 80, then 156k divided by 80 equates to a Gold price of 1950. If the ruble goes up in value, i.e., the USD/RUB falls, then Gold should rise in price. For example, if USD/RUB is 70, then the Gold price should be 2229. Whereas if the USD/RUB rises to 90, the Gold price should be 1733. Right now, the USD/RUB is 75.75, which would put Gold at 2060. But the going rate for Gold on the COMEX is 1930. Perhaps there is a discount given that this regime is new and needs to establish its credibility, or the COMEX is supressing the paper price, whereas the physical metal with premium included is closer to 2060. Either way, I am less focused on the rationale for the difference in price but the direction in which the ruble is headed and its effect on Gold."