What will happen to the price of gold when the ban is imposed ?
bidask
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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.
I give away money. I collect money.
I don’t love money . I do love the Lord God.
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The miners wont stop producing it so it would just sit in inventories potentially causing a glut.
Knowledge is the enemy of fear
Miners don’t produce it they mine it. It’s already sitting there.
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.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
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.
the song remains the same.
CBR will buy it.
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:
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
what will happen?
nothing
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?
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
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.
I knew it would happen.
This is mainly political posturing.... As Shakespeare put it once... "... full of sound and fury, signifying nothing." Cheers, RickO
mine it later on, just saying
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 ?
Russia will find many willing buyers outside of the collective west. Price will not be affected IMO.
Wasn't it written or said that Putin was going to bring gold down like Ukraine ? Or something to that effect.
This problem has been 30 years in the making. The world treated Russians like Elois
When all the time they were Morlocks.
I hope so - I miss $1000 gold.
Not sure but just received my monthly Au purchase. RGDS! Life's Good!
The whole worlds off its rocker, buy Gold™.