Russia May Retaliate Sanctions By Demanding Payment For Exports In Gold

The biggest factor driving gold prices at the moment is the increasing tension between the West and Russia over Ukraine. The EU agreed on a framework yesterday for its first sanctions on Russia since the Cold War.
This is a much stronger response to the Ukraine crisis than many expected and a mark of solidarity with Washington.   Senior American military officials have been making hawkish sounds and warned that they are ready for a military response to Russia.
Russian government officials and businessmen are bracing for sanctions resembling those applied to Iran according to Bloomberg. Should Russian foreign exchange reserves and bank assets be frozen as is being suggested, then Russia would likely respond by wholesale dumping of their dollar reserves and bonds.
In retaliation, Russia could opt to only accept gold bullion for payment for their gas, oil and other commodity exports. This would likely lead to a sharp fall in the dollar and a surge in gold prices.
Currency wars could soon take the turn for the worst that many of us have warned of for some years.



From Goldcore:

DAILY PRICE REPORT
Today’s AM fix was USD 1371.00, EUR 982.30 and GBP 821.70 per ounce.
Yesterday’s AM fix was USD 1355.75, EUR 977.47 and GBP 817.01 per ounce.

Gold rose $20.10 or 1.5% yesterday to $1,367.10/oz. Silver surged 47 cents or 2.2% to $21.28/oz.

Putin and a Gold Bar

Gold extended gains to a third session today, reaching fresh six month highs as investors hedged geopolitical risks and Chinese economic slowdown fears. Gold hit $1,375.20, its highest since September 10 and has gained 14% so far this year on global geopolitical and macroeconomic risk.

A significant bond default in China and a weak exports report has sent equities and base metals lower in recent days. More data overnight showed China’s economy slowed sharply in the first two months of the year, with growth in investment, retail sales and factory output all falling to multi-year lows.

The biggest factor driving gold prices at the moment is the increasing tension between the West and Russia over Ukraine. The EU agreed on a framework yesterday for its first sanctions on Russia since the Cold War.

Gold in US Dollars – 1 Year (Bloomberg)

This is a much stronger response to the Ukraine crisis than many expected and a mark of solidarity with Washington. Senior American military officials have been making hawkish sounds and warned that they are ready for a military response to Russia.

Russian government officials and businessmen are bracing for sanctions resembling those applied to Iran according to Bloomberg. Should Russian foreign exchange reserves and bank assets be frozen as is being suggested, then Russia would likely respond by wholesale dumping of their dollar reserves and bonds.

In retaliation, Russia could opt to only accept gold bullion for payment for their gas, oil and other commodity exports. This would likely lead to a sharp fall in the dollar and a surge in gold prices.

Currency wars could soon take the turn for the worst that many of us have warned of for some years.

Gold’s technical picture is increasingly positive after breaking resistance at $1,360/oz and the next levels of resistance are at $1,376/oz and $1,434/oz, the high from August 28th last year. In the short term, gold may be vulnerable to some profit taking and a period of correction and consolidation.

Silver Coin Sales Increase 11% as Price Declines 33% YoY
U.S. Mint sales of Platinum Eagle bullion coins rose by 200 Tuesday after advancing 8,500 on Monday, the first day of issue since 2008. Also higher on the day were sales of Silver Eagle coins. Sales rose 388,500 to above 1.1 million for the week, surpassing last week’s total.

U.S. Mint Silver Eagle Coins Sales and Silver in U.S. Dollars – Jan 2009 to March 2014 (Bloomberg)

February silver coin sales rose 11% yoy as prices fell 33% (see chart). Silver coin sales were down 22% from January. January produces sales spikes as collectors buy coins bearing the new year’s date and bullion wholesalers secure their inventories of new year coins for the year ahead.

Silver prices have risen more than 9% ytd after falling 18% during the final five months of 2013. A record 42.6 million silver coins were sold in 2013, up 26% from 2012.

1 oz Silver Buffalo Rounds As Low As 77 Cents Over Spot at SDBullion!


Comments

  1. The Blackest of Swans just flew over..and is getting ready to dump it’s waste on the USA

  2. I will have you humor me and take a hillbilly moment, ready?
    Well, duhh! (moment over)
    Does the west really think they can leverage sanctions against Russia, and Russia not strike back?!? Come on. 
    Think about it; what kind of politician would sacrifice a country’s economic safety in order to safe face. These politicians flexing at each other will be to blame for the collapse of the world monetary system as we know it.
    And what’s next? Who knows (who would want to know)? Either way, there will be difficult times ahead of us. It will be interesting to see how they intend to fix it (if it is fixable). It is almost biblical. The Mayan calendar ended last year, and I have read many resources that said there is a seven year gap, before it starts again. Remember the story about Joseph and his brothers? (just read Genesis 41: 28-36. I’m thinking the seven lean years are coming, if they aren’t here already.

    • @KATT: Guess you’ve never seen a “people on a city street interview”,  hillbillies are geniuses compared to some of them! Rural populations don’t have a monopoly on ignorant!

  3. He’ll have to settle for something else from the west because there isn’t any gold left. How about silver? No that’s in to strong of hands. More paper, not!  Cars, yeah, they’ve got a lot of those. Send us cars for oil!

  4. Looking at the man grinning in the background, Putin holding this gold bar with what looks like medical gloves, I’m thinking Putin just quipped—
    Da.  Phyzzupository for Obama  Da.  He will like it too.
    What are your thoughts,  Alexi?
    On another note, the Malaysian jet flew 4 hours after the transpoders were shut off The Rolls Royce engines transmit operating data That signal was live for 4 hours longer than any other data stream. The flight radius could be 2,500 miles. The Chinese satellite photos some vague chunks of floating debris, maybe from the Fukushima area or just the fiberglass panels of s fishing boat
    We have a Schroedinger’s Cat phenomenon here. By observing the engine data we see the jet alive. But looking at the floating debris we surmise the jet is down in the ocean. This really pegs my weird-o-meter My guess is posted on the forum section—Kunming Provice massacre

    • LOL, look close, I think he has a gold tooth in that toothy smile.

    • Well thought out, AGXIIX. Conflicting data from the aircraft just as on 9/11. Do the engines not transmit GPS data as well?
      And it took a Chinese satellite to spot what may have been wreckage, although nothing came of that.
      Of course, if ‘NCIS’ had been asked to investigate this aircraft, or the 9/11 ones, someone would have waved his hand over a keyboard and US spy satellite video would have come up on numerous giant screens showing the flight paths of all the aircraft. Pity it doesn’t happen (or perhaps isn’t allowed) in real life.

    • Latest rumor is the plane is at Diego Garcia…

  5. this conversation kind of reminds me of the movie Deliverance.  Cue the music.  Obama is played by Ned Beatty.  know wut I mean?

    • Squeal, fascist pig? Their pees in a pod except Obama’s not to bright. He needs all his commie controllers just to tell him what day it is! He’s just like Bush in that respect! How will the U.S. ever survive these people?

  6. Obummer’s handling of the UKraine debacle.
    A picture is often worth a thousand words.

  7. Should Russian foreign exchange reserves and bank assets be frozen as is being suggested, then Russia would likely respond by wholesale dumping of their dollar reserves and bonds.
    In retaliation, Russia could opt to only accept gold bullion for payment for their gas, oil and other commodity exports.”
     
    Please note the COULD.

     
    Not “IS” or “WILL” but COULD.

     
    I could run in the 100 metres.
    I could shoot green beams out of my eyes.
    I could marry a 9 foot super beast called Bertha.

  8. hahahahhahaha
      perfect  
    cue the music and dance, dance dance.  

    waitingforsilver I specifically said to not use four letter words like ‘run’ on this site.
    As for your wife Bertha
    Run for your life.
    100 meters will not be enough.
    she has the green beams shooting from her eyes
    From the Das Capitalist

  9. Photo caption:
    Would anyone mind if I smack the US Prez zero with this?
     
     
     

  10. Well… this agrees with Jim Willie’s prognostication…

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