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Russia Launches Precious Metals Commodity Market: Cash on Demand.

Written by Gary North on July 2, 2013

Russia is about to launch a new market. This market will enable people to buy and sell gold, meaning physical gold, on an exchange. It is not going to be based on commodity futures.

Also included will be silver. In 2014, palladium and platinum will be added to the list of metals.

The Moscow stock exchange has agreed to transport these precious metals from production companies, as well as store them, and deliver them to the buyer the next day. Presumably, this is going to boost liquidity of the markets.

To make this work, people have got to trust the Russian markets. This will be a test of people’s confidence in contracts issued by a Russian commodities market. If this trust spreads, this market could become an important source of accurate information regarding supply and demand for physical gold, silver, platinum, and palladium. It will serve as a check on the pricing that is produced by competition in the futures market, where only about 2% to 3% of the contracts involve physical delivery.

It will take years for this market to become a serious contender against America’s commodity futures markets. Speculators like leverage, and the futures market provides this leverage. But it will be useful to have a developed market in which we can compare the price of the physical precious metals in relationship to the prices registered on the futures markets.

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7 thoughts on “Russia Launches Precious Metals Commodity Market: Cash on Demand.

  1. Rabelrouser says:

    In knowing that the fiat currencies (false money) of the world have no real "instrinsic" value ; this would assure the nation of an accumlitive amount of real wealth amoungst the citizens. Markets can always be manipulated by the "value" set by centralized banking systems first and than their subbordinates in the markets.
    Percious metals ensure real wealth, and when held privately, ensure the wealth of the populace and allow the populace to control their futures.
    Americans would be smarter if they followed this ideal and not rely on the false paper as their wealth. Have they not yet understood that it can disapear within a second in time due to the markets situation?
    But another type of wealth will become the rule of the times, that of having food, water, hygeine, medical, ammo products that they can use to barter with to just survive the economic collapse that wil be brought on by the central banking cartels years of false (fiat) currency and inflation/deflation manipulations.
    This just shows russia is preparing in a substancial way for the future.

  2. Russia and China (with the Pan Asian Gold Exchange) are positioning themselves for the coming western financial collapse, hyperinflation and fall of the US Dollar as the world's reserve currency. They don't know exactly what will happen, but gaining trust of their markets and backing currency with precious metals will give them a huge advantage in the future. Be forewarned, this is the exact opposite of what the US and the rest of the "Western World" is doing.

  3. Wow, it looks like Russia is calling the COMEX's and LBMA's bluff. I wonder if this is actually going to get off the ground, or if something might be worked out between the three parties…wouldn't surprise me if some sort of "compromise" (should I say "compromised"?) position might be forthcoming after "talks".

  4. gvhparkridge says:

    How much real gold is in a paper share of gold stock?

  5. awkingsley says:

    The Russians are getting very clever. Maybe Putin is beginning to behave like an honest businessman. Paper trading is unethical. There should be at least a strict 30 – 40% margin requirement for every commodity trade, gold or otherwise, with trade matching, buy orders to sell orders. Big banks and institutions controlling markets without putting money on the line needs to be a thing of the past. Russia doesn't have a large gold trade: We will see if they can attract it. If the Russians or any other government decided to solve the problems from which Americans and the rest of the world are suffering, it would be a great day. However, I'm afraid this may be a New World Order Globalist game to get Americans to accept other world leaders, eventually making Americans bow to a world leader.

  6. Good points all but I'm having trouble seeing Putin as a free market advocate. That said it does look to me that Russia and China are trying to position themselves to take advantage of the collapse of the dollar whether it is cause by a hyperinflation or a collapse in the international bond market. My two cents.

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