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Does it say that they are going to sell gold at that price? If you can't exchange your rubles for gold at a fixed price, you can't really say the ruble is 'gold
by Finnucane 5y ago
Does it say that they are going to sell gold at that price? If you can't exchange your rubles for gold at a fixed price, you can't really say the ruble is 'gold backed'. All you can say is the Bank is forcing miners to sell to them at a discount.
- david927 5y agoWell that's the spot price ~ $1980/troy ounce.
- Finnucane 5y agoIs it? At today's exchange rate, that's $52/gram, or about $1600/troy ounce.
- willmadden 5y agoUSD:RUB rate is 96.05 right now. Spot gold is 1,953.48 USD, or 187,631.75 RUB per oz. 28.3495 grams in an oz of gold. 6,618.52 RUB per gram of gold at current prices. They are fixing the price at 5,000 RUB per gram of gold, so they are valuing the Ruble at a 32.3% premium to the current market value of RUB in gold (this moment).
- Finnucane 5y agoTroy oz is 31 grams. But still, they are not going to trade the ruble at that rate. The arbitrage would be too great.
- willmadden 5y agoI'm not so sure. See what's going on in Argentina between the blue dollar (free market) and the official ARS rate. 100%+ difference between the pegged value and free market value.