Russian Ruble, Other Currency Fall Impact On Pms

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Author	Replies: 8 / Views: 1,856
LeoS Valued Member United States 174 Posts	Posted 12/18/2014 3:26 pm The current state of the Ruble is exactly why I like at least some physical metals. It's the only universal currency that can be bought/sold globally with local currency. Silver and Gold if bought two weeks ago with the Ruble, would have maintained it's value, whereas the Ruble has dropped hard and fast. This got me to thinking.... Do you all think anyone in Russia scrambled to buy into the physical market? If another country was also hit with a huge drop in their currency, could this drive price up? Report this Post to the Staff

Northerncoins Pillar of the Community Canada 2019 Posts	Posted 12/18/2014 4:31 pm Dont know, just be happy you have some..just in case..Its sad how the worlds ecomomies are affected so much by oil prices, maybe someday we humans will lift ourselves up and beyond having to worry about money and markets etc etc, but I dont hold out alot of hope, we seem to repeat our mistakes over and over again century after century. But now there are Billions of us and climbing , interesting times ahead I think. Edited by Northerncoins 12/18/2014 4:35 pm Report this Post to the Staff
yup7676 Pillar of the Community United States 3789 Posts	Posted 12/18/2014 5:06 pm the obvious answer is- no. What did rise and is in an uptrend and will continue to rise is the USD. It is clear that Russia's problems are not helping gold and silver skyrocket, nor any other problem. But no worries, the Russians are sitting on a TON of USD so they wont need PMs. Report this Post to the Staff
sel_69l Bedrock of the Community Australia 21788 Posts	Posted 12/18/2014 5:39 pm It must be understood WHY the value of the Ruble has dropped so fast. It is a combination of economic sanctions and a huge drop in the oil price. The drop in the oil price is entirely artificial. Russia depends on a high price for oil, because they export the stuff, they need the income from this commodity. Along with the sanctions, the lowering of the oil price is being used as an economic weapon against Russia. There has been a deliberately contrived vast increase in fracked gas supply in the U.S. and so there is much less of a need for oil imports into the U.S. The Saudis have also greatly increased the availability of oil, so lowering the price. The lowering of the oil price has had an influence on the lowering of all other commodities, including PM's. As a side benefit, business in the U.S. is picking up a bit as a result of the lower oil price, so the cost of doing business is less. BUY PM's now, if you don't have a credit card debt; this situation won't last forever. Report this Post to the Staff
yup7676 Pillar of the Community United States 3789 Posts	Posted 12/18/2014 7:02 pm the drop in oil is completely due to an over supply, nothing artificial going on here, just less demand. The Russians will be fine on even 20-30 dollar oil. Whats really going on now is a panic, fear creeping in. When that happens, as we are seeing now,assets tend to overshoot. This is what is happening to the ruble right now, no one wants the ruble, everyone fears Russia going into default and so on. This is not the first time Russia has been in this situation either. Oil has been breaking down since roughly this Spring. Oil spent a good 2 years in a range doing nothing, until it broke the range lower, and headed toward yearly lows. The trend is down and will continue lower. All commodities have been in a downtrend for a while now and moving together lower, whether it be the grain complex, the energy complex, the softs, the base and PM metals, and on and on. There is no correlation between oil coming down and the PMs nor any other commodity. Again, all commodities have been breaking down since this spring, together in tandem, oil is not pushing other commodities down. Oil is not being used as an economic weapon. Why? Clearly it isn't because many commodity based countries depend on oil,and they have been slowing down as well, countries such as Canada and Australia are but just a few countries that are slowing down. Australia's currency has been melting down as commodity prices have dropped, they have been impacted by dropping prices in iron ore, copper, oil, natural gas and much more. Canada is also in the same situation. Both could also find themselves in the same situation, perhaps not as worse as Russia, but it is within the realm of possibility that they also experience a slowdown with the commodities downtrend. In Canada, many banks in the banking sector are already starting to show strains, as expressed by their share prices. This would imply there is more to come in terms of a slow down unless there is some sort of stabilization. What is not clear is what message the market is sending, if any. Since all commodities are in downtrends since earlier this year, is this deflation? Why is the long bond close to yearly highs? Why are the vast majority of world stock markets in downtrends? I have no answer nor I am tasked to determine why, I simply am and have been seeing all these symptoms for a while now. Report this Post to the Staff
Pacificoin Pillar of the Community Canada 5396 Posts	Posted 12/18/2014 10:25 pm It is ALL about the US dollar nothing else seems to matter right now. There is plenty of upside left in the Greenback. Oil is probably going much lower , as well as the precious metals and other commodities. The currencies all seem to be in a race to the bottom. Being in Canada and having US dollar income is sure working for me . Report this Post to the Staff
MontanaCMR Pillar of the Community United States 606 Posts	Posted 12/19/2014 01:00 am Lately, Oil prices and Silver prices have been positively correlated. Report this Post to the Staff
Domain555 Pillar of the Community United States 1804 Posts	Posted 12/26/2014 10:09 am Quote: It is ALL about the US dollar nothing else seems to matter right now. There is plenty of upside left in the Greenback. Oil is probably going much lower , as well as the precious metals and other commodities. The currencies all seem to be in a race to the bottom. Report this Post to the Staff
Domain555 Pillar of the Community United States 1804 Posts	Posted 12/26/2014 10:29 am sel_691 Quote: BUY PM's now, if you don't have a credit card debt; this situation won't last forever. About 35 years ago AG hit (about) $50. Remember the Hunt Bros.? Then about 10-12 years ago AG hit (about) $4.00. A 90+% drop. The trend is down as we visit. For long term PM HEAVY hoarding, might be better to wait until we see a positive weekly trend However, if I can snag (cull) Morgans at $12, and Peace dollars at $10-11, I'm all in. Report this Post to the Staff
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