Enduro Metals Corp. (ENDMF)

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Chico237;All: Ruble pegged to Gold, Russia will require payment in Gold for gas sales.

People can read the story and make up their own minds. The most immediate affect will be for the people in Europe who need to buy Russian Gas and Oil. (G7 has already rejected payments in rubles as a violation of their contracts with Russia.) Russia has a lot of gold reserves in overseas banks that have been "embargoed" because of the situation in Ukraine. I suspect that whenever they release them they will start to repatriate their physical holdings to Russia. Not a goldbug, but I see demand for gold rising.

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Russia pegs Ruble to gold

(UPDATED 10:39 AM EDT SEE BOTTOM) The Central Bank of Russia has officially announced that, as of March 28, 2022, the Russian Ruble currency is BOUND to Gold. The rate is 5,000 Rubles per gram of gold bullion.

(NOTE: This story has been corrected to report "TROY" ounces as opposed to dry ounces, and the values recomputed to reflect there are more grams per TROY ounce than in a dry ounce.)

There are 32 grams in each TROY ounce. 32 grams times 5,000 rubles per Gram is 160,000 Rubles. Ya with me so far?

The conversion rate of Rubles to U.S. Dollars is 100 Rubles, 90 Kopecs, to each US Dollar.

If Rubles are bound to Gold at 5000 Rubles per gram, and there are 32 grams per TROY ounce, meaning one ounce of gold would cost 160,000 Rubles, then converting that to US Dollars means Gold is $1600 per ounce when using Rubles, instead of $1,928 per ounce using Dollars.

Russia just wiped out about thirty percent (30%) of the value of the US Dollar, worldwide, when it comes to Gold Bullion.

Worse, because Russia will only sell its oil and gas in Rubles, and Rubles are now fixed at 5,000 Rubles per gram, anyone wishing to buy Oil or Gas will need to either pay in Rubles or pay in Gold, and they won't get the US Dollar value for the gold they tender as payment!

People around the world will be literally THROWING their money at the Ruble and DUMPING Dollars and EUROS to do it.

What Russia just did is the financial equivalent of detonating a nuclear bomb.

FWIW, the last guy on this planet who tried to back a currency with Gold, was Muammar Quadaffi of Libya.

NATO went into Libya, bombed the shit out of it, until the people of Libya grabbed Quadaffi on the street, beat him bloody, and put a bullet in his head.

As of this hour, 10:39 PM EDT, I suspect Bankers all over the world are on the phones with each other and with heads of state, instructing them that what Russia has done will totally smash both the US Dollar and the EURO, and those Bankers will be telling the heads of State that World War 3 must commence immediately.

Let me explain why.

Today, the Russian Central Bank pegged Rubles to Gold.

Last week, Russia declared they would only sell OIL and GAS in . . . Rubles.

This means Russian OIL and GAS are pegged to Gold with Rubles as the proxy for Gold.

EFFECT: Europe (that needs Russian Gas and Oil) will now have to buy Rubles from Putin using Gold, or pay for the Oil and Gas with Gold itself.

Currently, the FOREX Rate for Rubles to Dollars is about 100:1

BUT . . . with 5,000 Rubles now equaling one gram of Gold, and oil being priced directly in Gold, we are going to see a MASSIVE price disruption in FOREX markets, in terms of how much Gold a Dollar can still buy.

Foreign countries holding our Dollar Debt Notes in Reserve, will see an immediate, and far less use for them and will want to start dumping them in favor of something more stable; something which holds its value.

Basically, any currency pegged to Gold will fit the bill. which means countries like that -- like Japan -- will start dumping their Dollar Debt as fast as they can -- they are NOT going to go down with the ship! They will move into more stable currencies, like . . . the Ruble.

This will have a DE-flationary effect on the Ruble, making it more valuable over time.