Russia announces plans for a Gold Standard for the Ruble

On Tuesday 26th April Secretary for the Security Council of Russia, Nikolai Patrushev, announced that the Russian authorities are working on plans to create a Gold Standard for the Ruble. That doesn’t mean that the Gold Standard is in place, but simply that their intentions are that the Ruble will be backed by gold as well as other commodities sometime in the future.

So this is, in effect, an official public announcement regarding the intentions of the Russian authorities.

Patrushev said that this will be done to ensure the Ruble is able to act as “a means of payment” and that it would have some “intrinsic value and price stability”. He also talked about “purchasing power parity”.

In March, Russian authorities announced it would abolish VAT on purchases of Gold Bullion thereby making it easier (or rather cheaper) for ordinary Russians to buy gold. This tax stood at 20%. This was the first big step towards Russia adopting a Gold Standard. In late March, the Bank of Russia announced it would be buying gold from Russian banks for 5000 Rubles per gram until the end of June. This was the second big step towards Russia adopting a Gold Standard. Although this was subsequently changed two weeks later from 5000 Rubles per gram to a “negotiated price” which amounted to a small step backwards. Nevertheless, the general movement has been towards adopting a Gold Standard. So Patrushev’s announcement is confirmation of this movement.

When this Gold Standard will be implemented, is anyone’s guess. Unfortunately, no date was given.

As part of the interview Patrushev had with the Rossiyskaya Gazette (RG), he talked about the Ruble not being “pegged to the Dollar”. He also talked about how sanctions were bad for Russia but also bad for the West. The World Reserve Status of the Dollar was damaged as a result.

He also talked about increased cooperation between the BRICS nations – Brazil, Russia, India, China and South Africa. As well as African, Asian and Latin American countries.

So, he laid it all out.

I, for one, am awaiting further announcements with much anticipation.

Wise up and rise up.