Nate Fisher: Russia, gold, oil and the ruble: what’s happening and why it matters

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Nate Fisher: Russia, gold, oil and the ruble: what’s happening and why it matters

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Nate Fisher: Russia, gold, oil and the ruble: what’s happening and why it mattersYoutube

The Russian central bank recently turned its head with the news that it has started buying gold from banks again, setting a fixed price of 5,000 rubles per gram.

Nate Fisher, blogger, researcher and metals analyst at RenaissanceMen.org, delved into this situation, refining how it ties into Russia’s comments that “hostile nations” must pay for oil in rubles or gold.

The move generated interest due to its similarities to the gold standard system, where the value of a currency is tied to a specific price of gold. The gold standard hasn’t been used for some time.


However, as Fisher explained, there is some nuance in the current situation with Russia.

“It seems what they are having is that the ‘hostile nations’ can pay in rubles or grams of gold, but then for the’ friendly nations’ they can say, ‘Well, you can give us rubles, you can give us rupees, you can give us yuan. , whatever you want to give us, fine. ‘ But that goes to the central bank and they get the oil in return, “she noted.

“It’s kind of an oil window on the front end, but the back end has gold and rubles. So (Russia) can then use that currency – gold or rubles – and then buy other commodities.”

In Fisher’s mind, this is not a direct support of gold, but a “better mousetrap”.

“Indeed, gold is becoming a currency again, and that’s the only thing that drove me crazy,” he continued, noting that the nations Russia considers hostile do not want to pay for oil in rubles because that will strengthen the ruble. But at this point they also seem not to want to pay in gold.

“Why don’t they pay in gold? What’s the problem? Is gold too precious?” she questioned.

For Fisher, a key question is whether any country will actually buy oil from Russia in gold. “Right now I’m waiting to see in the headlines over the next couple of weeks if anyone is actually buying (oil) in grams of gold – and if that happens, what is the value and what will it actually turn gold worth into?” He said.

Check out the video above for his other thoughts on this evolving situation. You can also read Fisher’s original comments here and his follow-up here.

Don’t forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Charlotte McLeod, have no direct investment interest in any of the companies mentioned in this article.

Editorial information: T.Investing News Network does not guarantee the accuracy or completeness of the information reported in the interviews it conducts. The views expressed in these interviews do not reflect the views of Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

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