The New Catalyst for Owning Gold

At some point in time the clowns in DC will wish they had left the Russians alone…especially since there is a new catalyst for owning Gold.

Cue up: Russia/Putin (in 2022) stopped accepting Dollars or Euros for its gas.

Instead, Putin declared he will accept Rubles and/or Gold as payment for Russian gas/oil.

Ironically (or NOT) the sanctions against Russia –designed to cause a regime change in the east – have brought about regime change in the West.

How so?

By reducing its power and influence.

Proving, once again, that SANCTIONS DON”T WORK.

Putin simply copied the Nixon/Kissinger strategy – which created the petrodollar in 1973-74 – by getting the Saudis to agree to accept only dollars for oil.

But…and this is a Very Big Butt…

Today nations – deemed by Russia to be unfriendly – have been forced to buy rubles.

And that amounts to roughly 2 trillion by the EU alone. *

(*Note 2 Trillion is based on last year’s natural gas and oil imports from Russia)

And this will drive up the exchange rate.

Ironically (or NOT) the ruble has strengthened against the dollar from its low point of RUB 150 in 2022.

And that’s even before Germany and other nations buy rubles on the foreign exchanges to pay for Russian energy.

The Russians and Chinese are acutely aware that Western currencies – particularly the yen and euro – are likely to be undermined by recent developments.

Catalyst for Owning Gold

The financial war – which has always been in the background – is emerging into plain sight and becoming a battlefield between fiat currencies.

And – borrowing a gamer expression – “It’s on, like Donkey Kong.”

Keep in mind Russia can certainly afford to sell oil at significant discounts to market prices.

And there are buyers willing to break the American-led embargoes.

So, Russia has been initiating a squeeze on gold derivatives in Western capital markets by exploiting diminishing faith in Western institutions.

And by forcing the “unfriendly countries” into buying rubles, Russia’s Central Bank has been able to reduce interest rates and remove exchange controls.

At the same time, our inflation problems have become worse from a strong ruble.

Translation:  Putin continues to play chess while the West is still fumbling with checkers.

Meanwhile, China continues to take notes for its impending takeover of Taiwan.

And the lessons learned haven’t cost them a penny.

Bottom Line:

1. Don’t be afraid to buy gold and/or gold stocks
2. Take possession of your gold
3. Look for suggestions of gold and silver stocks in our April issue of “…In Plain English” (HERE).

Share this with a friend…especially if they’ve been “Thinking” of buying gold.

They’ll thank YOU later.

Remember:

We’re Not Just About Finance

But we use finance to give you hope.

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