Very few people understand what Putin is doing at the moment.   And almost no one understands what he will do in the future.
No matter how strange it may seem, but right now, Putin is selling Russian oil and gas ONLY for physical gold.
How long will the West be able to buy oil and gas from Russia in exchange for physical gold?
And what will happen to the US petrodollar after the West runs out of physical gold to pay for Russian oil, gas and uranium, as well as to pay for Chinese goods?
This is called “Checkmate”, ladies and gentlemen.  The game is over.



Submitted by Koos Jansen


This article was originally published at in Russian. The translation in English was first published at

Very few people understand what Putin is doing at the moment. And almost no one understands what he will do in the future.

No matter how strange it may seem, but right now, Putin is selling Russian oil and gas only for physical gold.

Putin is not shouting about it all over the world. And of course, he still accepts US dollars as an intermediate means of payment. But he immediately exchanges all these dollars obtained from the sale of oil and gas for physical gold!

To understand this, it is enough to look at the dynamics of growth of gold reserves of Russia and to compare this data with foreign exchange earnings of the RF coming from the sale of oil and gas over the same period.

Russia gold puchases Q3 2014

Moreover, in the third quarter the purchases by Russia of physical gold are at an all-time high, record levels.  In the third quarter of this year, Russia had purchased an incredible amount of gold in the amount of 55 tons. It’s more than all the central banks of all countries of the world combined (according to official data)!

In total, the central banks of all countries of the world have purchased 93 tons of the precious metal in the third quarter of 2014. It was the 15th consecutive quarter of net purchases of gold by Central banks. Of the 93 tonnes of gold purchases by central banks around the world during this period, the staggering volume of purchases – of 55 tons – belongs to Russia.

Not so long ago, British scientists have successfully come to the same conclusion, as was published in the Conclusion of the U.S. Geological survey a few years ago. Namely: Europe will not be able to survive without energy supply from Russia. Translated from English to any other language in the world it means: “The world will not be able to survive if oil and gas from Russia is subtracted from the global balance of energy supply”.

Thus, the Western world, built on the hegemony of the petrodollar, is in a catastrophic situation. In which it cannot survive without oil and gas supplies from Russia. And Russia is now ready to sell its oil and gas to the West only in exchange for physical gold! The twist of Putin’s game is that the mechanism for the sale of Russian energy to the West only for gold now works regardless of whether the West agrees to pay for Russian oil and gas with its artificially cheap gold, or not.

Since Russia has a constant flow of dollars from the sale of oil and gas, it will be able to convert these dollars to buy gold at current gold prices, depressed by all means by the West. This equates gold price, which had been artificially and meticulously lowered by the Fed and ESF many time…via artificially inflated purchasing power of the dollar through market manipulation.

Interesting fact:  The suppression of gold prices by the special department of US Government – ESF (Exchange Stabilization Fund) – with the aim of stabilizing the dollar has been made into a law in the United States.

In the financial world it is (generally) accepted as a given that gold is anti-dollar…i.e. the gold price runs inverse to value of the dollar.

  • In 1971, US President Richard Nixon closed the ‘gold window’, ending the free exchange of dollars for gold, guaranteed by the US in 1944 at Bretton Woods.
  • In 2014, Russian President Vladimir Putin has reopened the ‘gold window’, without asking Washington’s permission.

Right now the West spends much of its efforts and resources to suppress the prices of gold and oil. Thereby, on the one hand to distort the existing economic reality in favor of the US dollar …and on the other hand, to destroy the Russian economy, refusing to play the role of obedient vassal of the West.

Today assets such as gold and oil look proportionally weakened and excessively undervalued against the US dollar. It is a consequence of the enormous economic effort on the part of the West.

And now Putin sells Russian energy resources in exchange for these US dollars, artificially propped by the efforts of the West. With these dollar proceeds Putin immediately buys gold, artificially devalued against the U.S. dollar by the efforts of the West itself!

There is another interesting element in Putin’s game. It’s Russian uranium. Every sixth light bulb in the USA depends on its supply, which Russia sells to the US too…for dollars.

Thus, in exchange for Russian oil, gas and uranium, the West pays Russia with dollars, purchasing power of which is artificially inflated against oil and gold by the efforts (manipulations) of the West.  However,  Putin uses these dollars only to withdraw physical gold from the West in exchange at a price denominated in US dollars, artificially lowered by the same West.

This truly brilliant economic combination by Putin puts the West led by the United States in a position of a snake, aggressively and diligently devouring its own tail.

The idea of this economic golden trap for the West is probably not authored by Putin himself. Most likely it was the idea of Putin’s Advisor for Economic Affairs – Dr. Sergey Glazyev. Otherwise,  why seemingly not involved in business bureaucrat Glazyev, along with many Russian businessmen, was personally included by Washington on the sanction list?  The idea of an economist,  Dr. Glazyev was brilliantly executed by Putin…but with full endorsement from his Chinese colleague – XI Jinping.

Xi en Putin

Especially interesting in this context looks the November statement of the first Deputy Chairman of Central Bank of Russia Ksenia Yudaeva, which stressed that the CBR can use the gold from its reserves to pay for imports, if need be. It is obvious that in terms of sanctions by the Western world, this statement is addressed to the BRICS countries, and first of all China. For China, Russia’s willingness to pay for goods with Western gold is very convenient. And here’s why:

China recently announced that it will cease to increase its gold and currency reserves denominated in US dollars.Considering the growing trade deficit between the US and China (the current difference is five times in favor of China), then this statement translated from the financial language reads: “China stops selling their goods for dollars”. The world’s media chose not to notice this grandest in the recent monetary historic event . The issue is not that China literally refuses to sell its goods for US dollars. China, of course, will continue to accept US dollars as an intermediate means of payment for its goods. But, having taken dollars, China will immediately get rid of them and replace with something else in the structure of its gold and currency reserves. Otherwise the statement made by the monetary authorities of China loses its meaning: “We are stopping the increase of our gold and currency reserves, denominated in US dollars.” That is,China will no longer buy United States Treasury bonds for dollars earned from trade with any countries, as they did this before.

Thus, China will replace all the dollars that it will receive for its goods not only from the US but from all over the world with something else not to increase their gold currency reserves, denominated in US dollars. And here is an interesting question: what will China replace all the trade dollars with? What currency or an asset? Analysis of the current monetary policy of China shows that most likely the dollars coming from trade, or a substantial chunk of them, China will quietly replace and de facto is already replacing with Gold.

In this aspect, the solitaire of Russian-Chinese relations is extremely successful for Moscow and Beijing. Russia buys goods from China directly for gold at its current price. While China buys Russian energy resources for gold at its current price. At this Russian-Chinese festival of life there is a place for everything: Chinese goods, Russian energy resources, and gold – as a means of mutual payment. Only the US dollar has no place at this festival of life. And this is not surprising. Because the US dollar is not a Chinese product, nor a Russian energy resource. It is only an intermediate financial instrument of settlement – and an unnecessary intermediary. And it is customary to exclude unnecessary intermediaries from the interaction of two independent business partners.

It should be noted separately that the global market for physical gold is extremely small relative to the world market for physical oil supplies. And especially the world market for physical gold is microscopic compared to the entirety of world markets for physical delivery of oil, gas, uranium and goods.

Emphasis on the phrase “physical gold” is made because in exchange for its physical, not ‘paper’ energy resources, Russia is now withdrawing gold from the West, but only in its physical, not paper form.  China accomplishes this by acquiring from the West the artificially devalued physical gold as a payment for physical delivery of real products to the West.

The West hopes that Russia and China will accept as payment for their energy resources and goods…the “shitcoin” or so-called “paper gold” of various kinds also did not materialize. Russia and China are only interested in real gold and only the physical metal as a final means of payment.

For reference: the turnover of the market of paper gold, only of gold futures, is estimated at $360 billion per month. But physical delivery of gold is only for $280 million a month. This equates to a ratio of trade of paper gold versus physical gold to 1000 to 1.

Using the mechanism of active withdrawal from the market of one artificially lowered by the West financial asset (gold) in exchange for another artificially inflated by the West financial asset (USD), Putin has thereby started the countdown to the end of the world hegemony of petrodollar. Thus, Putin has put the West in a deadlock of the absence of any positive economic prospects.

The West can spend as much of its efforts and resources to artificially increase the purchasing power of the dollar, lower oil prices and artificially lower the purchasing power of gold. The problem of the West is that the stocks of physical gold in possession of the West are not unlimited. Therefore, the more the West devalues oil and gold against the US dollar, the faster it loses devaluing Gold from its not infinite reserves.

In this brilliantly played by Putin economic combination,  physical gold from the reserves of the West is rapidly flowing to Russia, China, Brazil, Kazakhstan and India (i.e. the BRICS countries).   At the current rate of reduction of reserves of physical gold, the West simply does not have the time to do anything against Putin’s Russia until the collapse of the entire Western petrodollar world. In chess the situation in which Putin has put the West, led by the US, is called “time trouble”.

The Western world has never faced such economic events and phenomena that are happening right now.  The former USSR rapidly sold gold during the fall of oil prices.  Today, Russia rapidly buys gold during the fall in oil prices. Thus, Russia poses a real threat to the American model of petrodollar world domination.

The main principle of world petrodollar model is allowing Western countries led by the United States to live at the expense of the labor and resources of other countries…based on the role of the US currency, dominant in the global monetary system (GMS) . The role of the US dollar in the GMS is that it is the ultimate means of payment. This means that the national currency of the United States in the structure of the GMS is the ultimate asset accumulator, to exchange which to any other asset does not make sense.

Led by Russia and China,  what the BRICS are doing now is actually changing the role and status of the US dollar in the global monetary system. From the ultimate means of payment and asset accumulation, the national currency of the USA, by the joint actions of Moscow and Beijing is turned into only an intermediate means of payment.  Intended only to exchange this interim payment for another and the ultimate financial asset – gold. Thus, the US dollar actually loses its role as the ultimate means of payment and asset accumulation, yielding both of those roles to another recognized, denationalized and depoliticized monetary asset – GOLD!

Traditionally, the West has used two methods to eliminate the threat to the hegemony of petrodollar model in the world and the consequent excessive privileges for the West:

One of these methods – colored revolutions. The second method, which is usually applied by the West, if the first fails – military aggression and bombing.

But in Russia’s case both of these methods are either impossible or unacceptable for the West.

Because, firstly, the population of Russia, unlike people in many other countries, does not wish to exchange their freedom and the future of their children for Western kielbasa (meat sausage). This is evident from the record ratings of Putin, regularly published by the leading Western rating agencies. Personal friendship of Washington protégé Navalny with Senator McCain played for him and Washington a very negative role. Having learned this fact from the media, 98% of the Russian population now perceive Navalny only as a vassal of Washington and a traitor to Russia’s national interests. Therefore Western professionals, who have not yet lost their mind, cannot dream about any color revolution in Russia.

As for the second traditional Western way of direct military aggression, Russia is certainly not Yugoslavia, not Iraq nor Libya. In any non-nuclear military operation against Russia, in the territory of Russia, the West led by the US is doomed to defeat. And the generals in the Pentagon exercising real leadership of NATO forces are aware of this. Similarly hopeless is a nuclear war against Russia, including the concept of so-called “preventive disarming nuclear strike”.  NATO is simply not technically able to strike a blow that would completely disarm the nuclear potential of Russia in all its many manifestations. A massive nuclear retaliatory strike on the enemy or a pool of enemies would be inevitable. And its total capacity will be enough for survivors to envy the dead. That is, an exchange of nuclear strikes with a country like Russia is not a solution to the looming problem of the collapse of a petrodollar world. It is in the best case, a final chord and the last point in the history of its existence. In the worst case – a nuclear winter and the demise of all life on the planet, except for the bacteria mutated from radiation.

The Western economic establishment can see and understand the essence of the situation. Leading Western economists are certainly aware of the severity of the predicament and hopelessness of the situation the Western world finds itself in, in Putin’s economic gold trap. After all, since the Bretton Woods agreements, we all know the Golden rule:“Who has more gold sets the rules.” But everyone in the West is silent about it. Silent because no one knows now how to get out of this situation.

If you explain to the Western public all the details of the looming economic disaster, the public will ask the supporters of a petrodollar world the most horrific questions, which will sound like this:

– How long will the West be able to buy oil and gas from Russia in exchange for physical gold?
– And what will happen to the US petrodollar after the West runs out of physical gold to pay for Russian oil, gas and uranium, as well as to pay for Chinese goods?

No one in the west today can answer these seemingly simple questions.

And this is called “Checkmate”, ladies and gentlemen. The game is over.

The above article was translated by Kristina Rus


  1. I’ll play.
    From which supply channels are China and Russia now supposed to source this metal, through which type of arrangement?
    Is Russia simply COMEX long? Is China simply draining Shanghai?

    It may deserve elaboration how Russia is to keep their own light on when half their tax income is paid in gold rather than ruble? Where do the Chinese goods come into it?

    • XC Skater,

      If there is anyone who knows the exact channels that Russia and China use to acquire gold, and the arrangements for each channel – there would no more need for speculation regarding How much gold did China & Russia import (or acquire)?


      That means the US/Russia/Gold gold holdings would be known and we would be informed of the Global Currency Reset (against gold). When the true numbers of each nation’s gold holdings are revealed, COMEX is done, and all future gold transactions would be Physical Only.

    • @Genuis8
      But with the volumes we’re talking here, it’s either payed out in a matter of days, or they are drilling into a gold source that is truly vast. Something entirely secret thus far, or previously thought to be depleted by the stacking community.
      How does one keep big gold transports a secret if they are so uncommon?

      OK, Russia could hold an physical account in China to keep it a bit under wraps.

      Can Russia really function as a nation coverting all oil income to gold? What money do they run the energy industry off of? Printed rubles?

    • this sounds like a response to yesterdays announcement that russia was selling their gold. the dollar is rising which doesnt really mean jack since every time the dollar rises it turns around and crashes again. right now the dollar looks nearly identical to 2007 – 2008 highs just as the housing crunch hit. now we have a high dollar with an oil crunch. i am not buying the ‘we are in great economic shape as compared to russia’ fud that has been permeating around the internet lately. what i see is an economic war and it appears that EVERYONE is caught in this crunch. it’s all about how it all turns out after the dust settles imo. the usd reserve currency looks pretty much on its death bed. the strategy ‘we trust in god’ to allow the federal reserve to print money strategy is obviously being proven to be a inferior strategy and is failing. not sure that means the usa ia dead though. it just means we should be using our high strong dollars to convert into commodities that are down atm imo. of course for many of you should sell your gold and silver right now while it is low and you can buy back later when it is higher. if we follow mainstream strategy on commodities: buy high sell low.

    • First, US Treasuries are Good As Cash. So, you do not sell UST, just as you do not sell your 100 USD bill. You can only spend it, which means you need to exchange it for goods or services.


      Russia has been spending their UST. Did their CB not use several billion US dollars of their FOREX Reserves to intervene on several occasions to prevent the RUB from dropping too fast? Where do you think their Big Firms with USD payments get USD? Convert their RUB to USD using banks issuing RUB bonds which is converted behind the scenes with the Russian CB for UST, and the bankers making some profit to boot.


      As for China, when they fund the BRICS Bank, the Asian Infrastructure Investment Bank, and the Currency Stabilization Fund – what do you think they use? US Treasuries, of course. All their new infrastructure projects with countries all over that they fund, use what? US Treasuries! This is what Jim Willie calls – Indirect Exchange.


      Example of Direct Exchange would be – China putting money in Belgium to use European Banks to buy gold for them? Or their import of gold from London, Australia, USA, and Switzerland? What about the multi-billion dollar loan by China to Argentina recently? US Treasuries, right?

  2. This story is complete BS.

    Keep in mind Russia balances their budget based on $150 oil, which was never going to happen.

    So how do they pay their bills at $50 oil and have oil left to sell for gold? They don’t. They need every $ to pay for government. They can’t just keep funding deficits they way we do (for now).

    • @ Bay of pigs

      Common sense should tell you that if their oil revenues have dropped in half they don’t have Rubles to be buying massive amounts of gold. A little more common sense should tell you that the massive drop in the value of Rubles would make gold buying VERY expensive indeed.

      I believe there’s propaganda here, but its the former KGB type.

    • “Russia Balances Their Budget”  ……….. I wonder if they provide tutorials on how to balance a budget ….. maybe they could teach the western thieves the principle for such things …… but seriously oil for gold really you having a hard time figuring that one out?? About oil for food or oil for just about anything they want call it petro-credit if you will…………. Geez man the US/UK/European imperialist dogs have been “balancing” their budgets using everything from Opium to JDAM’s for the past couple hundred years, I would think Russia can work out a simple oil for gold trade mechanism

    • It’s impossible to balance budgets in a debt based monetary system, as debt (money) must grow at an exponential rate to avoid the whole thing collapsing. An asset based monetary system, on the other hand…

    • @ Rakshas

      Once again you’ve missed the point. If they have to sell X barrels of oil at $100 to balance their budget (they can’t borrow more with the Ruble) then thy must sell 2X at $50. Therefor they must double production just to meet their government’s budget needs.

      Can they do this and sell “EXTRA” oil to buy gold? No.

      Its not that they couldn’t theoretically sell oil for gold, it that they have budgetary needs that require that oil to meet their government expenses.

  3. Russia has $200 billion in debt.  We have $18 trillion.  Who’s the bitch now?

    Russia has vast resources with wealth stored deep in the ground, oil production larger than Saudi Arabia. I hope they dont sell their gold  because that is playing into the City of London and Fed who are desperate to gather more gold to retain their power.  The Wealth Watchman makes a good case that the City of London and the Fed are the financial power centers of the world due to the gold holdings from decades and centuries past.  This gold has been sold or leased and only replenished in small amounts like Libya, Ukraine and other smaller weaker countries where gold is stolen late at night. Ecuador sold their gold to a Fed Bagman Goldman Sach earlier this year.  I think it was just over 140 tons. GS gave them high rate paper in return. I think it was some of the vault sweepings from the days of subprime mortgages.

    The big three, China, India and Russia have  centuries old scores to settle with the west and most particularly the US and the UK.  The DBAGs, Dutch, Belgium, Austrians and Germans are less afraid of Russia today and thus feel much safer in repatriating their gold.  There’s that little problem about the Fed and B of E not wanting to send it home.  Most of the sovereign gold was stored offshore in the FRBNY and LBMA and it’s now been sent east to pay for all the wars and financial repression that’s been waged for decades to maintain control of the western world. China, India and Russia thank them for being such fools. The power shift east is going tobe epic.

    WW Part 3 was tee’d up this AM and is the final chapter.  It’s quite an enjoyable read.

    • @AGXIIK


      “Russia has $200 billion in debt.”


      That’s the number I have seen too.  But they also have about $420B in foreign currency reserves.  This is about triple the amount of rubles they have in circulation, so they really do not have any sort of a currency crisis in Russia.  No, they may be having a goods crisis in Russia but not a currency crisis that would force them to sell their gold.


      “Russia has vast resources with wealth stored deep in the ground…”


      Indeed they do. They are a major producer of gold themselves as well as several other valuable industrial and rare earth metals, timber, oil & gas, plus vast steppes that will produce massive amounts of food for people and animals if they ever get their logistics under control.  The vast forests of Siberia could produce enough timber for much of the world if they had the rail, road, and port infrastructure for its development.

    •  “Ecuador sold their gold to a Fed Bagman Goldman Sach earlier this year.”


      No, Ecuador did not sold their gold to Goldman Sach. They demanded return of their gold from New York and were denied. Ecuador was cash settled instead. This is western propaganda initially was reported by Bloomberg.

    • Jim Rickards started Currency Wars with a war game played out of Langley where Rickards has worked as a consultant forever with the Russians backing their currency with gold which is exactly what we are now seeing.  So the CIA boyz who are in charge of this government ‘s covert actions have anticipated this ‘checkmate’ coming for a long time and as in Rickards book as in reality the US has no answer.  So, my question is, why are they playing? The only answer possible is they are deliberately steering the US down a path to its own destruction.  The likely answer is they have stolen more gold for themselves than we know and they ‘think’ that they are militarily superior to China and Russia .  What jerks.

  4. The vast forests of Siberia could produce enough timber for much of the world if they had the rail, road, and port infrastructure for its development.

    Interesting, that’s what America used to say and then they squandered all their natural resources on economic growth and then when those ran out they squandered the rest of the world’s resources via the militarily enforced 40 year trade deficit. Interesting how consumption of non-renewable resources is generally called “development”, even though in actuality it is anything but development. This seems very strange to me, and I even studied forestry for 4 years at school! The mindset is truly backwards.

    • Mark_BC:

      Absolutely correct.  That’s why this conflict in the world is going to lead to such a vast world depression because we have to start over before we ruin the rest of the world’s resources..we will need to retool such that we protect them in a society that respects human communities and human rights and the world’s resources.  We have gone machine age crazy…thinking we have such ‘power’ through our machines…what fools the people who think that way will be turned into by the coming world collapse.  Those US idiots who run this country with their computerized financial tools will look so stupid as they are running out of the gold that Russia is accumulating as they cheapen that metal to unbelievable levels as they run their Ponzi schemes.

    • You could substitute “non-renewable” everywhere I said “renewable” and my point would be even more valid. And boy, when the US runs out of oil (and Russia too, as they will soon be declining in oil “production”), you can bet all their forests will be r*ped (oh right, the term is “developed”) to provide biofuels as a substitute for oil, but there is no way the planet’s ecosystems could provide that many biofuels. As mfields111 says, we are up for a vast global depression, and unfortunately there is no way out of this one as there was in the 1930’s, since global growth is now finished and will start reversing big time once the financial ponzi scheme crashes. The only way out now is through a major, like in the order of 80-90%, reduction in population. The world is going to end. Sad and extreme statements, I know, but they are unfortunately what we now face.

      It’s funny thinking back on forestry school, I remember one of the things they hammered into us was that when managing forests you need to grow trees fast enough so that the average annual percentage growth in wood exceeds the interest rate, otherwise any capital will just go into government bonds instead of things like planting and tending the trees after they get razed. This mindset takes on a whole new meaning and level of stupidity to me now, now that the whole interest rate ponzi scheme is so blatantly revealed. Sadly, back then, my forestry program was largely developed by economists. I hope it’s changed now.

    • @Mark_BC

      I don’t understand why you believe America has “squandered all its natural resources.” That is simply not true. To this day the US is blessed with an abundance of resources that is the envy of most countries.

      From the Alaska Forest Association:

      “Today, forest growth in the United States exceeds harvest by 37%.  More than 730 million acres of forest cover the U.S. – that equals two-thirds of the forested area present when Columbus landed in America.  There is now 28% more standing timber volume in the U.S. than in 1952.”

      It’s not just forestlands.

      The US uses less than 1 billion short tons of coal per year; according to the EIA, it has recoverable reserves of 257 billion tons (and 481 billion overall).

      In 1986, the US was thought to have less than a decade of reserves in the ground. This year it was announced that US oil reserves are at a 38-year high.

      I could go on an on, but I’ve got a big honey-do list to tackle this weekend.  🙂


    • @LexLuther,pay no mind to this story,it’s all bull! this piece was a story that was put out by Soc-Gen as really a spec piece to deceive.this story was put up @zh yesterday.after reading it,the author made innuendo using words like “maybe,possibly, could be”, which anyone with half a wit can figure out that Soc-Gen put out a “stinger” piece to “deceive” the reader into thinking that russia was in trouble,and now they need to use gold to pay their everyday bills.after about 500 comments by zh posters,along with dissecting the story it became very clear that the “source”, Soc-gen, didn’t have a source, because speculation and conjecture is not a source. now banks all around the world are playing the game of deception against russian everyday living………….it’s so sad the low’s that will be used to deceive,which tells me were getting closer to the day of reckoning.the old saying,believe what you see,half of what you read, and nothing you hear.

  5. Hey guys, I’ve been on here reading for awhile but this is my first time actually commenting, I don’t mean to spam this board for a sale, but I have quite a gem and thought I’d share it here.  I have  a 10 oz loaf style Engelhard that has the serial # scratched off of it (I swear I didn’t do it). The kicker is…. It was poured too cool causing a weird formation along the bottom of the sides. At the time of listing this on ebay I was unaware of it being such a rare piece and was only thinking I might fetch a nice premium due to the Engelhard name and then I could add a few oz’s to my stack. I have since been informed by a fellow collector/ebayer that this may be an “engelhard collectors dream” and that there were less than 100 of these made. I’m still pretty new to the PM community in comparison to some of the old-timers here (I’m only 26). You all have taught me very much. I usually only skim the articles, but read every comment thoroughly and appreciate the many different views/insights/opinions.  I can only hope that SD will allow this to be posted as I am not trying to steal and thunder from SD but rather trying to give the opportunity to own such a piece to a community that has provided me with more knowledge than my pea-brain could ever retain. I can provide pictures if anyone is interested.

    Since it is my first time commenting I guess I should add my thoughts to all that is going on. My thoughts are I have absolutely not a clue. To me the world feels like it’s about to be thrown from it’s financial axis and that things may get very dicey here soon.  In reality who knows what is going on, and who knows where it will take us? I don’t think there is much reliable data to follow, and without reliable data we are all just trying to pin the tail on the donkey in the most difficult of circumstances (i.e floating in space with a blindfold on where the donkey may be anywhere in our galaxy). This is why I do not fault the gurus for being completely wrong, I only fault them for making predictions which they publicize to be formed from solid information/data.

    As far as Russia goes. I think they will come out of this “crisis” much stronger than they went into it. If I was a currency trader, I’d say now might be a good time to trade some dollars for rubles. I just don’t see a complete collapse in ruble happening right now. The ruble may fall even more in the short-term but in my opinion it will have a nice rebound eventually, just like the metals…….eventually. lol.

    Anyways there’s my thoughts. Certainly I lack the IQ and experience of many of you who comment here, but as I’ve found one of the best ways to gain a better understanding is to put your own thoughts out there and listen to the feedback. It seems most people here have very useful opinions and I welcome them all.

    • take that Englehard bar to a reputable dealer and see what it’s worth,maybe you can find out if the provenance for this bar is real or not. i wouldn’t be too worried about russia they will be fine.but now you can see what some people with power can/will do to a country,or anyone or anything for that matter,that may be a threat to the global status quo,IE: like people who act so sweet and nice like buffet,pay off as many politicians as you can so the keystone pipeline doesn’t get built,so his “choo-choo’s” can transport oil over his train tracks while suppressing the creation of good jobs for americans. thats right,Warren Buffet is a fine american POS,so sweet and nice,he even plays the ukele and eats cheeseburgers and drinks coke………at 26,you’re doing better than that thief !

    • @cmfz41   I’m the inverse of your age and would have given serious coin to have these  educational resources back in those days.  At 26, in 1978,  that would have been a wonderful time to trade silver as it took its moonshot  Maybe we’re in another epoch like the one experienced in the last half of the 1970s decade.

      A few years back we had a few hundreds Mathey Johnson and Englehardt 1 oz ingots with serial numbers on all.  I sold them at the gun show for $35 an ounce but in talking to another silver fan, he said these might have been collector items since they were minted in the 1970’s.  We had some of the mini loaf styles in 1 ounce ingots.  Funny looking bits of silver.

      Like an misprint, such as those elusive US coins that have a glitch, it could be a good idea to check on its value.  After Von NotHaus received his sentence and some sort of probation, his Lady Libery $20 1 ounce silver coins are still counterfeit and subject to seizure, like the 1933 St Gaudens.  But E Loafs like you describe could be a real find.

      I guess those Lady Liberties will stay in deep stack for a while longer.

    • @AGXIIK


      “Maybe we’re in another epoch like the one experienced in the last half of the 1970s decade.”


      It sure seems like it, Bro.  The past 6 years seem a LOT like the Carter years.  But back then, we were smarter than we are today.  We only gave old Jimmy 4 years to mess up the country and not 8 years like the current resident of the WH is getting.  As Forrest Gump used to say, “Stupid is as stupid does”.


      Bad as this all is, I am wondering if we’ve learned anything from the experience or if we’re going to elect Hilly-Billy in 2016 for another 4-8 years of this crap.  I sure hope that we do not.  Strong as this country is, that might be more than it can take.  🙁


      I sure wish that I had kept my Spanish up to date.  If I had, I could have taught it to my wife, spoken it in the home, and be all ready for a nice LONG visit to Chile, which I have heard is a beautiful country with excellent native wines, superb seafood, and friendly people.  Don’t care so much for the earthquakes there, though.  But then, nothing’s perfect.


      “After Von NotHaus received his sentence and some sort of probation, his Lady Libery $20 1 ounce silver coins are still counterfeit and subject to seizure, like the 1933 St Gaudens.”


      The irony of the greatest counterfeiters on the planet accusing one man of being a “counterfeiter” is astounding… especially when his coins contained REAL silver while the official currency has nothing whatever backing its value.  I had not heard that he got probation.  I hope that he did because this entire situation was a classic example of “much ado about nothing”… until the Feds MADE something of it.


    • I could have taught it to my wife, spoken it in the home, and be all ready for a nice LONG visit to Chile, which I have heard is a beautiful country with excellent native wines, superb seafood, and friendly people.

      My mom has family friends down there, they work in engineering in mines. I think he’s lost his job now, but they had a lot of money stored away in US Treasuries I believe, living in a nice gated community outside Santiago, so they are wealthy at least for a little while…

      And my friend went on a cruise there. They all say it’s a nice stable country (interesting how that can shift in only a few decades) but there is lots of poverty, if that bothers you, and garbage thrown around. But I’d head to S America too if things get bad up here. I was actually thinking of going down beforehand and riding into the Atacama desert with my bike and burying a bunch of gold…

      I wonder though, I think Asia might be a safer place to be, and I believe English is catered to well in places.

    • Extremely enlightening interview. Thanks so much for posting.
      You don’t get such insights even on RT.
      I kind of understood Putin was fighting a local war, but I didn’t realize it was the banking clan, in this way.

      Makes me wonder why Putin is waiting to dissolve the Russian CB. To have the right moment when people are screaming for change so he can give it?

  6. I’ll have to admit that after many years of research I still don’t really understand how the global economy works.  There are about a million opinions on this. Nobody ever knows the direction that any given market is going to take, it is always speculation at best.  Throw in all the geopolitics, elites manipulating everything, black swans, etc. and your head will start spinning.  What will the West do about all this oil for gold business?  Will they take their sophisticated lasers and point them at Russia saying buy dollars or we will zap your asses off the face of the earth?  I have no idea.  I do know that when times are tough a warm place to rest your head and a belly full of food is way better than staring at metal in your hand or worrying about your 401K.

    • @snake  I’m not sure if the overlords do either.  They seem to be making a real clusterbungle of it and using QE to paper over their mistakes.  The Masters of the Universe?  Nope-   the Masters of Disaster

    • @Snake


      “I’ll have to admit that after many years of research I still don’t really understand how the global economy works.”


      Well, you’re not alone in this.  My best guess is that NOBODY really understands the global and even most national economies.  If they did, they would not be trying to continually “fix” a system that is not broken until they start “fixing” it.  A free market with minimal rules and regulations is the best of all worlds in economics.  The further we get from this, the more complex things get.  As something becomes more complex, it also becomes more prone to failures of various kinds.


      “Nobody ever knows the direction that any given market is going to take, it is always speculation at best.”


      This is absolutely the case.  In large part, the future is not only unknown to us but it is unknowable by us.  About all we can do is follow the larger trends and then try to make our best educated guesses based on those trends and what we know of the many factors that can influence them.  While this may seem chaotic, and it is to some extent, it’s pretty much how it has to be.  If it wasn’t like this, anyone who could figure it out would gain all of the money.  We need the give and take and ups and downs that uncertainty provides.


      “I do know that when times are tough a warm place to rest your head and a belly full of food is way better than staring at metal in your hand or worrying about your 401K.”


      The basics of life are absolute essentials that comfort us all… a warm soft bed, good food and drink, and beloved family and friends with whom to share what we have and keep us company as we do the same for them.  There are a lot of other things that we need and that bring us comfort and well-being as well but this is the start of the list.


      Metal in hand and money in the bank / brokerage are means to the ends that we all seek.  They are not the goal in and of themselves but only something that will help us provide what we need.  Many of us here have silver and / or gold stashed that serves as our financial insurance against difficult times, a store of value, and an inflation hedge.  There’s nothing wrong with that as long as we moderate what we are doing such that we are not completely geared to one particular future.  This is a form of prepping and it is my thought that we need to prep in general but not super-specifically.  Prepping for general problems fits our situation best because we do not know what the future holds for us.  If we did know, we all could prep for EXACTLY what will happen.  The good news is that since we all prep at least a little differently, we should be able to barter for the things that we might need later and don’t have with someone else who has what we need while we have some of what they need.


    • A free market with minimal rules and regulations is the best of all worlds in economics.  The further we get from this, the more complex things get.

      Sorry to disagree with you so much today Ed, but free markets only work when the economy can grow. Free markets best utilize increasing consumption of natural resources and maximally put them to good use in providing people with “stuff”. This is one of the main reasons why America prospered for so long in its early years up until about 50 years ago, as it was offered a vast new continent of opportunity. When those resources become scarce, free markets aren’t going to get you much, and if anything just provide an opportunity for the manipulators to take advantage of those markets and resources and steal the crumbs from the rest of the population.

      But, there is quite a bit of ambiguity around the term “free market”. I’ve never seen anyone define is succinctly, so when people argue about it they are often arguing apples with oranges. So I’d actually probably agree with many of the characteristics of free markets you are espousing. But we do need rules and regulations, and as resources run out, we unfortunately need even more, to protect the remaining scarce resources, as the incentive for everyone is to do what they can to ravage those resources to make ever-more scarce profit.

  7. @henesau  I stand corrected   The events created some controversy but what I took from that news article was the Ecuador needed cash and gave up their gold.   I thought it was shipped out of country but the effect was basically the same.  they lost their gold and got bupkess

  8. It really is becoming seriously embarrassing  to be a part of the West. Stupidity, immorality on an epic scale and downright evil seem to be the order of the day from all western governments now whilst they continue to spout guff claiming that the moral high ground is theirs and that they are spreading democratic principles. Frankly it makes me want to puke with shame. I want my country back and governed by the rule of law by people who can actually understand that concept.

    • +1

      You are not alone with those sentiments. It is getting harder and harder to comprehend what has actually happened to the West, to say the least. It is sad, pathetic and downright depressing.

      Hang in there brother…

  9. There was an article about Putin’s plan to sell oil for dollars and immediately buy gold

    If russia sells oil priced in dollars for $60 per bbl they receive  US dollars.  These dollars are now worth twice the value of the depreciated ruble.  Russian currency reserves increase as they sell oil.    The dollars are used to buy devalued gold at $1,200 an ounce.  That’s a 20 to 1 gold to oil ratio.  20 bbl of oil for one ounce of gold.   Gold goes for about $40,000,000 a ton. One ton of gold is equivalent in value to 660,000 bbl of oil at $60 per bbl. Russia produced 11,000,000 barrels of oil per day.

    If Russia produces about 11,000,000 barrels of oil a day, equalling $660,000,000 in oil revenues,  that’s the equivalent of  16 tons of gold in dollarized Russian oil production. Some of the oil is used by Russia but it’s a larger oil producer than Saudi Arabia. Of the 11,000,000 barrels produced, how much free cash flow is produced to give Russia cash to spend on oil. I think it’s quite a bit and more than enough to protect Russia’s core economic interests despite the western sanctions.   Oil can be traded for many commodities.  Gold can be accumulated easily given these low oil prices.   1000 tons of gold is only $40 billion.  That is how many days of Russian oil production?  Around 60 days worth.  2 months of oil production could technically buy 1000 tons of gold.

    If Russia sees its oil as a strategic reserve,  like China sees its foreign currency as a strategic reserve, Russia should be able to balance the scales on this western based economic attack by selling oil for dollars—OR GOLD—as some surmise they will do.  Europe ceases to exist if Russian oil stops flowing.  The western world ceases to exist if Russian oil stops flowing.   Who’s the bitch now?  The west is committing sanction seppuku as it tries to decimate Russia, a country that spans 11 time zones.

    The west is deep into Russian territory, far from its FIAT supply lines.  Hitler and Napoleon found out the hard way how that did not work for their strategic ambitions.

    Putin is the west’s tar baby.

    Iran was selling oil to India, China and even Japan for gold when they were booted from the SWIFT system. They suffered 80% inflation as their currency dropped precipitously but they survived and are much closer to being ready for prime time.

    Imagine what will happen when Russia starts its own SWIFT system, slated to go on line next week.   They could effectively side step western sanctions, selling oil in gold, rubles, dollars, yuan, rupees or anything else.  SDRs would not even come close to factoring into this trade and currency platform.  Russia, in alliance with China, could create the new petro paradigm.  Those who have the gold make the rules.
    My math brain might have missed a calculation or two but the essense of this is that russia is not nearly as vulnerable as the western press tries to indicate. the west will get a serious case of Rouge Derriere if they persist in these sanctions

    • @AGXIIK


      The thing that gets me about all these sanctions is that they rarely ever work as intended and seem to do more damage than good.  The term “backfire” occurs to me.  The West seems to be trying to “isolate” Russia.  What makes anyone think that Russia CAN be isolated?  It is a huge country that borders on many nations and a lot of them want to trade with Russia.  Russia can sell all the gas and oil they produce to Asia.  They do not need Europe.  Because of the current pipe, road, and rail infrastructure, it is now convenient to sell oil and gas to Europe but that does not mean that they HAVE to sell to Europe.  That huge gas deal between Russia and China was just for openers, IMO.  Much more of this is in the offing, with other Asian nations ready, willing, and able to get in on these deals and to join any groups as necessary that allow them to participate in these deals.


  10. The central banks of China and Russia have signed a 3-year ruble-yuan currency swap deal up to $25 billion, in order to boost trade using national currencies and lessen dependence on the dollar and euro.

    On Monday, China’s Central Bank announced the 150 billion yuan (815 billion ruble) currency swap between the Russian ruble and Chinese yuan. In terms of the Chinese currency that is $24.5 billion, and in Russian rubles, $20.1 billion.

    “We need to expand the practice of using national currencies in trade. Currently they only account for 7 percent of turnover,” Prime Minister Dmitry Medvedev said at the 18th annual Russian-Chinese Commission, also attended by Chinese Premier Li Keqiang.

    The deal is valid for 3 years, and can be extended if both Russia and China agree. The draft currency swap was settled in August, but details on the size of the deal were sketchy.

    Using more local currencies will speed up trade between the two countries who are aiming to reach $100 billion by 2015. Trade between Russia and China is already nearly $90 billion and is scheduled to hit $200 billion in the next six years.

    Cooperation between Russian and Chinese banks is also on the rise, and China’s Import Export Bank, which is 100% state owned, has pledged to help Russian banks now cut off from Western capital markets, due to the latest round of sanctions.

    The Export-Import Bank (Exim) has agreed to establish a credit line equivalent to $2 billion for Russian state bank VTB, and has also signed agreements with VEB (Vnesheconombank), and the Russian Agricultural Bank.

    The credit lines can be used to finance imports from China, from agriculture to high tech equipment.

    Medvedev and Li signed over 40 other agreements at the meeting, including outlining plans to add another pipeline from Russia to China. Li is in Moscow for a three-day visit

  11. The deal is valid for 3 years, and can be extended if both Russia and China agree. The draft currency swap was settled in August, but details on the size of the deal were sketchy.

    Using more local currencies will speed up trade between the two countries who are aiming to reach $100 billion by 2015. Trade between Russia and China is already nearly $90 billion and is scheduled to hit $200 billion in the next six years.



  12. @agxIIIk, drummerboy

    I agree I feel extremely fortunate to have found such a community at my age, and by luck instead of despair like many of the poor souls who were wiped out in the 08 stock market crash.  I only hope that I don’t croak early due to the stress caused by all the valuable yet very depressing information I’ve gathered through the pm’s community. Like others have mentioned I feel more and more ashamed every day, not that I have much of a choice other than to renounce my citizenship and move out of the country along with my fiance and 2 year old daughter.

    As far as the Engelhard bar goes, I have sent a picture to and am awaiting a response. This was acquired through an agreement based on the spot price at the time, which was around 20 bucks, so the fact that it could possibly be a collectible means it’d be quite a nice return.  Though I will probably just replace it with another 10 oz bar and x # of rounds depending on what I’m able get out of it.  I’d get a picture up here for you guys but I can’t figure it out.  I listed it on ebay a few days ago and already has a bid of 320.00.  and would hate to disappoint the bidder/watchers by removing it so I’ll probably just let it go on there. here is the link if any of you would like to check it out.

    1 ounce loafs huh? Wouldn’t mind acquiring some of those. I will acquire collectibles that tend to carry premiums through labor means as it seems people are a little more willing to negotiate with labor, but if I am actually buying I won’t pay for hefty premiums. The best silver is free though, get a metal detector;)

    p.s I will have to read up on von nothaus as I know nothing of him. Thanks for another tid bit of info!

  13. @cmfz41    That’s a pretty nice offer  $32 an ounce from the git go. I’ll offer 20,000 kwatloos for the bar.  These are spendable on Triskellion.   Check a 1969 Star Trek episode for that tale.  Kirk gets really friendly with Uhuru.  And that was a really big deal.  Even Martin Luther King paid attention.

    So here is the basics on Bernard Von NotHaus. It is an epic tale.   Bernie was big into specialty mintings in silver gold and copper.  One of his most notable was the Ron Paul coin

    Several years ago he minted the equivalent  of $7,000,000 of 1 ounce .999 pure silver coins with a picture of Lady Liberty  It was quite the coin but Bernie made the big mistake of putting the words 20 dollars and $20   Uncle sam is many things  and a son of a bitch is one of them   Anyone putting the symbols of US currency on a coin not minted Uncle himself tends to get his attention and a considerable amount of wrath

    So Bernie was hooked up, taken to the hoosegow and his $7,000,000 in coins confiscated.  That lot was actually already spoken for and prepaid or so the story goes.   The government just completed their conviction of BVN and he got some sort of probation.  The minting supposed was melted down or destroyed but the people who paid for these coins will be made whole—but not in coins or silver supposedly.  They’ll get cash0—hopefully at the spot price frow 4 years ago or so.

    With all those doings you can find his liberty and collectibles on line but I am not sure ebay offers anything of his.  They banned the sale of the $20 ‘counterfeit’ coin because the mere possession of this coin makes a person persona non grata in the eyes of the gumint

    I just talked to an authority on these coins and he said they cannot be traded or sold because the coins, unlike Bernie and his metallic Mulligan, are still considered contraband.    A few years back MonkeyBoy, a trader on some obscure coin trading website was offering the @20 libertys for $100 when spot was around $30.  So your Englehardt with its own special value and something that has no issues with Uncle Sam, is reasonable at $32 for its collectible value

    I hope you get $100 an ounce for the EBar

    Those 1 ounce loaves of silver looked like a silver coated car turd—rough and particularly ugly specimins of silver but they went with the 1 ounces ingots and I regret selling the ingots as they might also have some numismatic value

    I’ll trot over the Ebay and see what is going on with those items

    As for Bernie’s $20 Libertys.   I’m jussssst sayin’ that I know someone who had a bunch but he lost them in a canoe accident on  the Truckee river a while back.   The gummint considers those who possess these coins as a Domestic Terrorist  according to one expert on the subject.  Bernie made quite a name for himself and pissed off the powers that be so much due to his ROn Paul-like stance of ending/killing the Fed, he was set up big time and paid for it.  His losses were probably in the millions.   He should have married jamie Dimon’s daughter.   That’s the only high cover for gangsters and counterfeiters that I know of today.  Or Blankfein’s ex-wife

  14. @AGXIIK. Weird, I was thinking the same last night, but without the figures you posted.

    Along similar lines, only a very small percentage of the population considers gold to be the canary these days. But the price of oil ?

    Sheeple may wake up soon, as the oil price per barrel is manipulated, as this does effect them at the pump..

    In saying that, oil down bblby 40% , petrolat the pump down by 10%, hmmm, nice spread don’t you thinj?

  15. roger that @skiddypants.   And another thing.   the Swiss national Bank just announced that it will charge large depositors .25% (25 basis points) to park their funds at the SNB.

    Stockman just wrote a post about this and I am shocked, shocked at this outrage.  The nicey nice Swiss in their lederhosen and cow bells would charge the Russian Oligarchs and the uberwealthy Europeans and companies  $2,500,000 just to park $1 billion in the SNB account   Wow, how unfriendly. I plan to write a nasty letter to the Swiss President and take my $15 billion in  FIAT straight out and put it in US Treasuries.

    Like the rest of the world as the USD goes parabolic

    @Bay of Pigs   Don’t mention I’m a former banker.  You’ll blow my cover as the biggest troll on SD.    42 months  of dumb f*** posting and I’m very close to destroying the world with Disinfo and MOPE.  Ranger will agree with that,  I am sure.

    I wonder how the BIS and the Swiss voting against gold are related to the SNB decision?

  16. Here is the indication that Central Bank of Russia is going to be nationalised.
    This is what I talked about in my comments to the previous article about a crisis in Russia.
    How did mister Chicago mayer frame it? “Never let a good crisis to go to waste”, or something very similar.

    • @prometeybezkrilov   This just in.   Russia just bought 18.6 tons of gold.  Russia selling gold???  Soc Gen disinfo and MOPE.  600,000 ounces of gold  $720,000,000 million spent.  12,000,000 barrels of oil spent at $60 a barrel.  Barely 1 day of production from Russian oil fields.

      On another channel India has thus far bought 35% of the world’s silver production

      China’s currency reserves just dropped $100,000,000,000  even with a $50 billion trade surplus.

      What are they buying with those currency reserves?

      Gold?  Yes but even 1000 tons of gold would only cost around $40 billion and that is pretty close to what China spent this year on gold.

      Maybe they’re buying crude?

      A VLCC  holds 2,000,000 barrels of oil, presently worth $120 million.  100 of these ships would hold 200,000,000 barrels worth $12 billion.  China could afford this much crude out of chump change.

      Russia can buy $1,200 gold out of oil production spillage

      And the west wants to make Putin their bitch.


      Black gold or yellow gold—- They are both on sale  priced in US dollars and the west is going to get their collective heads handed to them when they find they have no gold or oil.

  17. Whew. That’s quite a read, including comments. The problem here is the currency, not the energy this time. It’s just the usual shift that is done every few years. Although of many grades, oil is fungeable. People that switch to buying oil from Russia switched from somewhere. That somewhere is going to have more oil to sell to those who lost their supply from Russia. They rattle our cages about that every few years. Whatever oil is there is going to be distributed in about the same ratios that it had been.

    The currency? No I don’t know and can’t speculate about that. It’s a mess. Unless you desperately need to cash in your precious metals right now, you probably don’t need to worry about that. Energy is a serious problem, of course, as it is fundamental to life. But when they do something this obvious, energy is not the immediate problem. They’ve got that one covered or they wouldn’t be terrorizing us with it.

  18. @agnes  the thing that is troublesome here is that the dollar shot up 1.6% this week while crude price in dollars drops. Pricing crude in something other than dollar, such as gold, will shake the world.

    The really big problem you note is  currencies; the derivatives that are at huge risk with bad loans in the shale oil patch, Greece (big problem) Venezuela and Ukraine.  The loans and bonds collectively are tens of trillions in losses and we don’t have the money to bail out all these crises. Even if the US government agrees to bail out these banks bad banks derivatives losses with the FDIC and depositors accounts, an event that is happening right now, the losses are completely unsustainable

    On a light note, as Iwrote on HO’s site that David Cameron, PM of a small island nation (Not Cyprus yet) said Russia does not deserve to be a member of the international community

    Putin, as Marx (Groucho that is) replied

    ” I would not want to be a member of an international community that would not want me to be a member of that community’

  19. @AGX

    I think with currencies, once we learn about all the details so we have proof of a problem, we can stop thinking about the details and focus on fundamentals. I got so I knew too much about everything, and my brain just about blew up. I’ve become much more like Nassim Taleb’s friend Fat Tony from the Antifragility book. That book is the best survival book I have ever read. But beware. When you finish the book, he throws you right back to the beginning, and you end up reading again, and again. I finally stopped in the middle of round 4. But I am about to go back and read it again. One only truly learns on a helix: circle the subject over and over rising in knowledge each time. Precious metals are fundamental. They will hold their value. The details are nothing but interesting entertainment.

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