GOLD In A Time of Crisis

Gold and silver have always been safe-haven assets throughout human history. Due to their long history of serving as a store of wealth and maintaining their purchasing power, they gain the trust of investors, collectors, and even governments.

Fun fact: gold and silver don't increase in prices; their price surges because every other thing depreciates. Not fun, but fact: According to a recent CNN report, a network of Russian and Sudanese military leaders is collaborating to pillage the African country's gold reserves and production, allowing Moscow to finance its ongoing conflict in Ukraine despite more and more severe Western sanctions. As horrible as it sounds, this proves that gold is still the best store of value and even medium of exchange out there. Russia is desperate to get more gold as it's the only commodity in the world that could save the Ruble. But, I'm sure other precious metals can also have safe-haven properties like gold.

When shit hits the fan, fiat monies won't work anymore; they are nothing but papers. There are many ways the world or your country can mess up. Hyperinflation is one of them. Who knows, maybe your country is the next banana republic. When all hell breaks loose, the banana dollar is not going to help feed your family. The only acceptable currency at that point is precious metals. Bitcoin? Perhaps, if your counterparties are degens and have hardware wallets. But, can't we acknowledge how reassuring it is to have tangible assets or commodities sitting around during a time of crisis?

Perhaps the world is not going to end soon. Suppose the best hedge fund manager, Nancy Pelosi's Taiwan visit, didn't trigger world war 3. In that case, world peace must be more resilient than we think. Even without WW3, gold and silver are valuable. We don't need a world-ending scenario to see how precious metals are truly precious.

Russia's Dependence on Gold

Russia has been hoarding gold and is now using gold as the fund for the Ukraine war. I mean, think bout it, why gold? The West basically refuses to trade with Russia anymore. As Russia got sanctioned, the Ruble plummeted by 50% because everyone lost faith in the currency. Then Russia declared to convert the Ruble to a gold standard, and the rest is history (like a shitcoin, the Ruble shot up 180%). Some arguments suggest Russia did not return to a gold standard. However, there are reports that say the Ruble is still linked to gold, implying that Russia has adopted a semi-gold standard. Even if there was no gold standard, Russia still successfully stopped the bleeding of the Ruble by selling gold.

The Ruble is now sitting comfortably at +22% before the sanction; I thought we were supposed to hate Russia! Yeah, but gold is gold; apparently, the market has no moral compass.