Russian Ruble Relaunched Linked to Gold And Commodities – RT.com Q and A

• Russian Ruble relaunched linked to Gold and Commodities – RT.com Q and A
  by Ronan Manly, https://www.bullionstar.com/
  With Russia’s central bank having just profoundly altered the international trade and monetary system by linking the Russian ruble to both gold and commodities, the journalists at RT.com in Moscow asked me to write a Q and A article on what these developments mean, and the ramifications of these changes on the Russian ruble, the US dollar, the gold price and the global system of currencies. This article is being published on the RT.com website.
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  Regular readers will recall that I have contributed to quite a few RT.com articles before, such as about Australian gold (see BullionStar here), US Treasury gold (see BullionStar here), Poland’s gold (see RT site here), China’s gold (see RT’s Spanish site here), why buy physical gold (see RT site here), and gold price manipulation (see RT site here).   
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  However, since RT.com is now blocked and censored in many Western locations such as the EU, UK, US and Canada, and since many readers may not be able to access the RT.com website (unless using a VPN), my Questions and Answers that are in the new RT.com article are now published here in their entirety.
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  Who would have thought that citizens of ‘free speech’ Western countries would need a VPN to read a Russian news site?
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  Why is setting a Fixed Price for Gold in Rubles significant?
  By offering to buy gold from Russian banks at a fixed price of 5000 rubles per gram, the Bank of Russia has both linked the ruble to gold and, since gold trades in US dollars, set a floor price for the ruble in terms of the US dollar.
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  We can see this linkage in action since Friday 25 March when the Bank of Russia made the fixed price announcement. The ruble was trading at around 100 to the US dollar at that time, but has since strengthened and is nearing 80 to the US dollar. Why? Because gold has been trading on international markets at about US$ 62 per gram which is equivalent to (5000 / 62) = about 80.5, and markets and arbitrage traders have now taken note, driving the RUB / USD exchange rate higher.
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  read more.

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