Teuton Resources Corp V.TUO

Gold, the Ruble and Natural Gas

[stockzorg]

CNBC shows the Ruble has strengthened to 76 per U. S. dollar this morning after the Russia Central Bank reduced interest rates by a full 3% overnight.  Yet the price of gold has not gone up as it was supposed to after Putin pegged gold to the Ruble at 5000 per gram.  In fact, gold is slightly down this morning to $1936/oz.  So much for the idea that the Ruble peg would force the price of gold to increase.

That said, it does bring up an interesting question.  Why is the entire world willing to accept only 76 Rubles to the dollar for currency exchanges when they could be getting 80 Rubles to the dollar by exchanging gold at Putin's fixed price?  Here are some thoughts/ideas on that:

1.  In order to give Putin physical gold, you need to have some  It could be that none is available, or that the supply of "available" gold has already been lent out ("double-booked") to support sham pricing of paper gold.

2.  Countries that store gold for other countries like the U. S. and U. K. may have made policy decisions that gold will not be provided to support conversion to Rubles.  This would be an interesting decision since we already know that countries like India are more than willing to give gold to Putin in exchange for Rubles to purchase natural gas.  To put this another way, the U. S. and U. K. may have essentially frozen the accounts of countries like India.  This was supposed to lead to demands to move the gold back to India etc. which would put pressure on the physical supply.  For some reason that has not happened.

3.  The folks who have been manipulating the price of gold for decades are simply ignoring the Ruble gold peg and continuing to manipulate the price regardless of consequences.  This was supposed to lead to a rash of physical delivery demands so that owners of gold paper could get the better Ruble conversion price.  However, it could be that holders of paper gold are afraid to demand delivery and highlight the obvious manipulation process for the world to observe in the cold light of day.

I can't say which of these scenarios are in play, only that there is now a clear discrepancy between the price of Rubles in currency vs. gold.  That discrepancy translates into risk that someone will find a way to trade gold for cheaper Rubles and the movement of gold to Russia will create more stress on an already overstressed paper gold price fraud.

The discrepancy will also be very interesting to folks in China who should quickly realize that stress can be applied to the U. S. by either a) supporting the Ruble so that it further strengthens against the U. S. dollar or b) selling dollars to achieve the same effect or c) buying in more physical gold to put further pressure on the supply of gold.

Either way, at some point the market could give us clues as to what is going on behind the scenes.  That will be interesting.

I would love to hear other ideas on this from the group.

[highper]

zero hedge covered the most part of your story this morning. Ruble Surges To 5-Month Highs After Russia Unexpectedly Slashes Rates By 300bps What is even more surprising to many is that the Ruble - previously dismissed as "rubble" by President Biden - actually strengthened further on the rate-cut, surging to 72/USD. https://www.zerohedge.com/markets/ruble-surges-5-month-highs-after

[stockzorg]

I agree that we could be early in the game with respect to gold prices.  But until I see some actual movement I'm not buying in.  The zero hedge article points out a number of work-arounds that have already been implemented - many would prevent price movements in gold. I also saw the post where Russia was asking themselves the same question:  "why should we pay 80 Rubles

[Fabe]

2 points: 1) it's old news already https://www.reuters.com/business/russias-central-bank-says-it-will-stop-buying-gold-fixed-price-2022-04-07/ There are multiple views out there in terms of why such program was ended so quickly and now gets negotiated case by case. 2) regardless, it did not seem to have a big impact or very few took the arb opportunity. 1 of the reason: RUB has been

[highper]

Multiple views? Not really. This article is saying that Russia no longer needs to support the ruble by fixing its price to a quantity of physical gold.  The most probable reason for this is the world is not adhering to the American sanctions. Even America is importing russian oil for another month or so. America has exempted other commodities as well. It may just be that the world is

[stockzorg]

I remember at least a couple of posts about Treaty East being a possible mill site for Treaty Creek.  Does that make any sense?

[highper]

I was the one who raised that treaty east potentiality.... I was talking through my hat. The basis for raising it was that it was located at a much lower elevation near the treaty creek valley... whether a tailings pond could be constructed there I wouldn't even have a clue. The maps indicate there is a valley on the opposite side of the goldstorm mountain. Again I know nothing about the

[stocktraderguy1]

so it is safe to say that Tuor has some hurdles to get over, while SEA is much further advanced, and with SEA building road and power to the edage of the treaty creek property, this helps but does not solve all the issues. 

[highper]

sea is building a road into the heart of the treaty creek property. That road will eventually extend right to the ksm property.  That will save tudor a bundle in helicopter costs when it is completed. 

[stockzorg]

I notice that the area to be served by the real estate includes staging for future exploration of Four J's, Tennyson, Pearson, etc. Immediately to the north of those claims is the Crown properties.  Every time Dino takes another million shares of Tudor, he will be getting another 258,000 shares in the Tudor spinout.  So he will have a stake in all of the former Teuton properties

[highper]

Yes and the south western block of new crest/pretium land as well. I suspect the VOK site will have difficulty accommodating an environmentally acceptable solution at the current mill site location if they had to incorporate the lower grade bridge zone deposit into the mix. I'm only speculating on the reason for Tuo's puzzling purchase of real estate relatively proximate to the old granduc

[rockport1]

highper, this land purchase is more interesting than I first realized. I only took a passing interest in the transaction, however, you have piqued my interest.   Until now, I hadn't realized it is such a large parcel.  570 acres is about 1.5 km x 1.5 km!  And flat lying too!  Definitely must be a very strategic purchase. Worth watching to see how it all plays out.

[highper]

Environmental permitting for a mine and mill is a very expensive and time consuming process. It is far easier to permit a mill that is adjacent to historically mining activity than in a greenfields location.. Obviously the mountainous terrain in the golden triangle region limits a miner's build out options.  Newcrest has committed to a hefty exploration budget on the pretium

[rockport1]

I have been patiently waiting years to see them swiss cheese the Orion anomolies.  It would certainly fulfil my long held curiousity on this property, if it actually happens this year.  Once the spin-out is complete, I expect I will be picking up shares just for that reason.   

[Fabe]

Maybe more clearly. Some said was ending the program due to liquidity concerns. Others like Macleod is arguing the following through KNW Alasdair Macleod: Yes, Eric, its a fascinating situation because there was this announcement last week from the Russian Central Bank that they were prepared to stand there and buy gold from Russian banks at a fixed rate of 5,000 rubles per gram. And then this

[highper]

Fabe I saw that at 5000 rubles per gram the russians were paying more than the price  of gold in the spot market. Alasdair Mcleod calculated thereal number in a second article... which i didn't paste here because I didn't want to get too far away from revisioning teuton and the treaty creek project .. but i will now because my understanding of the transaction was incorrect and

[highper]

oops  ... here is the link https://kingworldnews.com/russia-may-be-engineering-a-short-squeeze-in-the-gold-market-as-part-of-the-ongoing-financial-war-with-the-west/?utm_source=rss&utm_medium=rss&utm_campaign=russia-may-be-engineering-a-short-squeeze-in-the-gold-market-as-part-of-the-ongoing-financial-war-with-the-west