Russia Planning a New Gold Standard to Fight the London Bullion Market Association (LBMA)
In March of 2022, the London Bullion Market Association (LBMA) suspended the membership of six major Russian gold producers to “ensure an orderly market”, as written in a press release dating back to March of this year.
A new Moscow World Standard (MWS) for gold?
Fast forward five months, the Russian Finance Ministry announced a “critical” new standard to normalize the functioning of the precious metals industry both domestically and globally and have a strong alternative to the London Bullion Market Association. “The Moscow World Standard (MWS) will become an alternative to the systematically rigged and manipulated precious metals market to lower prices”.
At the core of this new structure, there will be a brand new international precious metals exchange headquartered in Moscow. The Russian committee working on this also proposed fixing precious metals prices based on the largest banks based in countries that are members of the Eurasian Economic Union.
Russia is planning a new market for gold, platinum, silver, and other precious metals that will be regulated by countries that control the resources for these precious metals. This would be a revolutionary shift in supply, demand, and therefore price action in these markets. Based on this new market led by the MWS, it intends to expand the bilateral trade in currencies specifically excluding dollars, euros, and pound.
Eurasian countries, and Brics combined already produce 57% of the world’s supply of precious metals. With Peru, Venezuela, and other countries joining soon this number will only grow in favor of the MWS. Another important factor to consider is that Russia has already fixed the price of gold in Rubles which works out to approximately $2,440 US, or $3,150 Canadian Dollars.
What does this mean for you?
It seems to be clear that Russia, alongside its economic allies (aka BRICKS) are giving everything they’ve got to exclude the dollar, euro, and the pound from international monetary settlements and therefore dramatically reducing the importance of western currencies. Precious metals are a logical way to go for Russia as they just like us understand that ultimately, currencies backed by precious metals cannot be fooled. It seems the days of the LBMA’s ability to drive down gold prices using manipulative tactics in the paper market are coming to an end!
One thing is clear. Russia and other BRICs countries are ready to peg currencies to precious metals. Considering they control the majority of precious metal production, it seems that they might be playing their cards right.
As soon as it hits mainstream, we’ll likely see headlines saying “If you’re holding precious metals, you’re funding Russia!” Remember the 2030 agenda? “You’ll own nothing and be happy”.
Well it turns out, with the rapid devalatuion of our currencies, we might indeed soon own “nothing”. And one thing is for sure. BRIC’s pegging their currencies directly to precious metals shows that BRIC’s countries are NOT going to fight individuals owning gold. The “west” just might.
When the days of the LBMA are numbered, we will see the true value of precious metals. This time on a global level. Keep stacking friends!