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To the gold bugs...do u think that gold is going to drop in price due to the ruble falling in value...I am thinking that Russia may sell some gold reserves to prop up their currency....this is way over my head but was thinking about all the articles in the last couple years of Russia, China and other countries buying gold...what do you think would happen to their economy if they had to sell now when they were buying gold at a higher price. If they don't sell to strengthen their currency then what good was it to buy it?

If I was holding gold I might just sell it right now and get in front of that avalanche.

Burp...

That's China and India buying Russia's entire gold reserve.

Dips and surges in price are driven by and thru the paper market and while that has a temporary affect on physical price due to the current bizarre mechanism of price discovery used and abused in futures markets, for those that would gamble on this either way, good luck to you.

Funny you should mention that 68, I'm reading a book right now where the author describes being in a govt. economic "war game" several years ago and the guys playing it have China selling Russia ALL it's reserves of gold and Russia starting a "new" currency backed from it.

johnbrickner wrote:Funny you should mention that 68, I'm reading a book right now where the author describes being in a govt. economic "war game" several years ago and the guys playing it have China selling Russia ALL it's reserves of gold and Russia starting a "new" currency backed from it.

sounds like James Rickards

I doubt russia will prop up fiat with metal when they presumably bought the metal knowing this was coming in some form.

Exactly

Treetop wrote:I doubt russia will prop up fiat with metal when they presumably bought the metal knowing this was coming in some form.

So if Russia knew it was coming, suppose they might let the ruble crash? And see what other currencies they might be able to take down also, say the US dollar and the Euro? And then maybe start a new currency backed by gold?

I'd bet on this scenario if it wasn't for the falling price of oil. Certainly can't be what they intended, but it still may be what happens.