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What will happen to the price of gold when the ban is imposed ?

bidaskbidask Posts: 13,825 ✭✭✭✭✭
I manage money. I earn money. I save money .
I give away money. I collect money.
I don’t love money . I do love the Lord God.




Comments

  • cohodkcohodk Posts: 18,512 ✭✭✭✭✭

    The miners wont stop producing it so it would just sit in inventories potentially causing a glut.

    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • JimTylerJimTyler Posts: 3,004 ✭✭✭✭✭

    @cohodk said:
    The miners wont stop producing it so it would just sit in inventories potentially causing a glut.

    Miners don’t produce it they mine it. It’s already sitting there.

  • derrybderryb Posts: 36,033 ✭✭✭✭✭

    New tougher sanction imposed by US, UK, Japan and Canada on the importing of newly mined or refined gold.
    How they will tell the difference between new and old gold will be most interesting.

    Sanction follows and earlier sanction by the London Bullion Market Association's (LBMA) March suspension of accreditation for six Russian precious metals refiners.

    Russian central bank and Russian oligarchs will likely welcome the russian gold that others refuse to accept.

    Reduction of gold supply to the sanctioning countries could affect supply and ultimately price. However, since March, the loss of russian gold to the LMBA warehouses has not so far affected price.

    For sure if this move were to cause a disruption in western gold supply the sanctions would quickly AND QUIETLY be dropped. Western sanctions are hurting the west more than those they are directed at. Would be nice to see this latest move cause westerners to have to pay more for gold like they are doing with other russian imports that sanctions have taken away from them.

    The decline from democracy to tyranny is both a natural and inevitable one.

  • JimTylerJimTyler Posts: 3,004 ✭✭✭✭✭

    I don’t think Russia should get away with this war but I can’t help feeling like everything they (US/Allies ) do they are shooting themselves in the foot.

  • silverbulsilverbul Posts: 139 ✭✭✭

    the song remains the same.

  • meluaufeetmeluaufeet Posts: 746 ✭✭✭

    CBR will buy it.

  • derrybderryb Posts: 36,033 ✭✭✭✭✭

    the biggest buyers of gold in recent years have not been G7 countries (United States, France, Canada, Germany, Japan, the United Kingdom and Italy), many of whom naively sold much if not all their gold in the recent past and have refused or simply don't have the funds to restock

    Central banks of China, India and Turkey will gladly purchase russian gold. China has been steadily reducing its dollar holdings and increasing its gold holdings:

    As for "punishing" Russia, here is a chart of the US vs Russian current account balance: guess who is at a record surplus and who is at a record deficit:

    The decline from democracy to tyranny is both a natural and inevitable one.

  • MsMorrisineMsMorrisine Posts: 32,041 ✭✭✭✭✭

    what will happen?

    nothing

    Current maintainer of Stone's Master List of Favorite Websites // My BST transactions
  • tincuptincup Posts: 4,724 ✭✭✭✭✭

    I don't think too much will happen to the price of gold when G-7 ban takes affect. As mentioned, there are other big buyers who will gladly buy the Russian gold.

    ----- kj
  • derrybderryb Posts: 36,033 ✭✭✭✭✭

    @tincup said:
    I don't think too much will happen to the price of gold when G-7 ban takes affect. As mentioned, there are other big buyers who will gladly buy the Russian gold.

    the question is how will it affect an already tight supply?

    The decline from democracy to tyranny is both a natural and inevitable one.

  • jmski52jmski52 Posts: 22,271 ✭✭✭✭✭

    Russia wasn't going to sell gold for euros or dollars anyhow. The West is in a self-inflicted dilemma. Maybe somebody will figure it out when the lights have gone off for a few weeks.

    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • rickoricko Posts: 98,724 ✭✭✭✭✭

    This is mainly political posturing.... As Shakespeare put it once... "... full of sound and fury, signifying nothing." Cheers, RickO

  • johnny9434johnny9434 Posts: 27,332 ✭✭✭✭✭

    @JimTyler said:

    @cohodk said:
    The miners wont stop producing it so it would just sit in inventories potentially causing a glut.

    Miners don’t produce it they mine it. It’s already sitting there.

    mine it later on, just saying

  • dcarrdcarr Posts: 7,905 ✭✭✭✭✭
    edited June 28, 2022 10:29AM

    Usually what happens is there will be more smuggling.

    If the price of gold is higher in one region due to import restrictions, then people will find a way to smuggle gold into that region to take advantage of the price disparity.

    But how much (if any) gold did Russia actually supply to the world market ? I thought they were a net buyer ?

  • ARCOARCO Posts: 4,296 ✭✭✭✭✭

    Russia will find many willing buyers outside of the collective west. Price will not be affected IMO.

  • ARCOARCO Posts: 4,296 ✭✭✭✭✭

    @ARCO said:
    Russia will find many willing buyers outside of the collective west. Price will not be affected IMO. When Russia has had enough, exports to Europe and USA will stop. USA gets much of its uranium from Russia. These sanctions by the west are like watching a boxing match where one fighter just punches their own face.

  • TwoSides2aCoinTwoSides2aCoin Posts: 43,760 ✭✭✭✭✭

    Wasn't it written or said that Putin was going to bring gold down like Ukraine ? Or something to that effect.

  • JimTylerJimTyler Posts: 3,004 ✭✭✭✭✭

    This problem has been 30 years in the making. The world treated Russians like Elois

    When all the time they were Morlocks.

  • 3stars3stars Posts: 2,278 ✭✭✭✭✭

    @TwoSides2aCoin said:
    Wasn't it written or said that Putin was going to bring gold down like Ukraine ? Or something to that effect.

    I hope so - I miss $1000 gold.

    Previous transactions: Wondercoin, goldman86, dmarks, Type2
  • blitzdudeblitzdude Posts: 5,302 ✭✭✭✭✭

    Not sure but just received my monthly Au purchase. RGDS! Life's Good!

    The whole worlds off its rocker, buy Gold™.

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