Another Reason to Stack PM - A Lesson From Russian Sanctions

[SilverStorm]

I was browsing the news and came across this interesting article on how current sanctions affect ordinary Russians.   I copied and pasted only the first half of the article; you can click on the link to read the entire article if you wish.  I have bolded the relevant point I want to emphasize.

Link: Russian sanctions: It’s all about the price of bread in Russia - The Washington Post

 

Ordinary Russians were already worried about rising food prices. Then came war and sanctions

For many Russian citizens older than about 30, the scenario is painfully familiar: Prices for nearly all goods are rising, and the value of the ruble is dropping.

A popular Telegram group is advising people to withdraw all their savings, convert cash into dollars or euros, or buy “physical assets” such as phones, watches and cars that can be sold at a later stage. Lines are forming at ATMs and banks, and rumors where foreign currency might be available are spreading fast. Nearly everybody is making frenzied calculations about how long their savings will last to buy basic staples.

The situation is reminiscent of the hyperinflation of the early 1990s, when President Boris Yeltsin liberalized prices as a prerequisite for the creation of a market economy after the collapse of the Soviet Union. As a worried Muscovite confided in 1992 in a journal that is now preserved in an archive of diaries by ordinary Russians: “Prices are outrageous! From 2 to 11 rubles [in one year] for a loaf of black bread.”

Rising food prices and food insecurity were the most obvious signs that something was going wrong on the path toward democracy and prosperity charted by Yeltsin.

In Vladimir Putin’s Russia, high-quality food staples became more widely available and relatively affordable. After 2015, though, inflation began creeping back due to low oil prices and Western sanctions for Russia’s annexation of Crimea. Prices rose further during the pandemic due to global supply chain disruptions.

By the time the war started, Russians were already vulnerable to food price inflation. In a July 2021 survey, 60.4 percent of respondents said they spend about half of their monthly income on food. And the cost of food was a concern for nearly every family. The survey said 96.3 percent of respondents drew attention to the rise in food prices. “In their opinion, vegetables, fruits, dairy products, meat, and vegetable oils have risen most of all,” the survey found.

The concern about the cost of basic staples and the frenzied efforts to convert cash or virtual savings into commodities with lasting value are thus familiar to Russian citizens. What remains unpredictable is how sanctions will affect ordinary Russians as the situation unfolds....

 

When fiat currency collapses and becomes worthless, having silver/gold on hand will help to feed and clothe yourself and/or your family.  This is why we stack, for when a SHTF scenario comes knocking on your door.  The axiom "better to have and not need it, rather than need it and not have it" could not be more true.  

[goldsilverdash]

Phones, watches, and cars? Not what I would go for.

Gold and silver, cryptocurrency, and cash sounds a lot better.

[MJCOIN]

Gold and silver for sure.  

Crypto falls into the category of "if you don't hold it, you don't own it" for me.

Cash - sure, but it's only good if people believe it's a store of wealth.  Once confidence goes in it,  it's worthless.

[goldsilverdash]

58 minutes ago, MJCOIN said:

Gold and silver for sure.  

Crypto falls into the category of "if you don't hold it, you don't own it" for me.

Cash - sure, but it's only good if people believe it's a store of wealth.  Once confidence goes in it,  it's worthless.

If you have your crypto in a non-custodial wallet for which you control the private keys (and not on some centralised exchange), then you hold it in the fullest sense of the term.

Cash is terrible as a long-term store of wealth, it is fiat currency after all. But short-term you probably wouldn't want to be without it. Cash is still king in most parts of the world. I hope that one day I can live fiat free, but having some physical cash at hand is still a very good idea. At least it is better than keeping fiat in a bank.

Edited March 14, 2022 by goldsilverdash

[MJCOIN]

I am concerned about crypto for many reasons.  Mainly because I don't understand it.  Also, what happens if you can't get online because there's no power or you don't have an internet connection or you forget your password or any other number of reasons?

For me, crypto is a big no.  For others who know more about it I'm sure they are comfortable with their position.  Each to their own.

[goldsilverdash]

48 minutes ago, MJCOIN said:

I am concerned about crypto for many reasons.  Mainly because I don't understand it.  Also, what happens if you can't get online because there's no power or you don't have an internet connection or you forget your password or any other number of reasons?

For me, crypto is a big no.  For others who know more about it I'm sure they are comfortable with their position.  Each to their own.

I respect your position. You are right that crypto transactions do indeed depend on infrastructure that may be down, which is a good reason not to rely on it exclusively. And that is one more reason to have some gold and silver coins as well.

[Bigmarc]

1 hour ago, MJCOIN said:

I am concerned about crypto for many reasons.  Mainly because I don't understand it.  Also, what happens if you can't get online because there's no power or you don't have an internet connection or you forget your password or any other number of reasons?

For me, crypto is a big no.  For others who know more about it I'm sure they are comfortable with their position.  Each to their own.

I started learning about crypto over a year ago. I still have no clue or no idea what is going on, I am on multiple exchanges and have multiple wallets and to be honest it's far to complicated for you average person who lives on your street to understand. I would say it is worth having a go just to understand it. 

I have gold and silver but watching what is happening to Russians with regards to sanctions kind of gets the mind thinking. I read a article that many Russians are going through brokers to change their assets in neutral states like the UAE. So maybe currency from neutral states might be a good idea. I have a app that can change it up in seconds but is that good enough? Who knows. 

[Stacktastic]

3 hours ago, goldsilverdash said:

Phones, watches, and cars? Not what I would go for.

i was thinking that although a decent limited edition Rolex would not be a bad long term shout as you can cross borders with it, but it shouts 'mug me please'.
Surely buying bags of rice, salt, alcohol, coffee & things that might become scarce would be best - especially the rice as you can eat it.
I would have had a lpallet delivered months back if I was russian & they know from experience how things can turn.
combine the weather & government its a potentially deadly situation for the average joe. 
My guess is that gold is probably sky high on the premiums now from dealers due to demand. 

3 hours ago, goldsilverdash said:

But short-term you probably wouldn't want to be without it. 

Im in a cash position but then again I know what to do with it when the time is right. 
That time is not now.  

2 hours ago, MJCOIN said:

I am concerned about crypto for many reasons.  Mainly because I don't understand it. 

19 minutes ago, Bigmarc said:

 I still have no clue or no idea what is going on

This is what i hear time and time again even from the experts, they are almost hanging on a projected utopia where everything is down & they have an asset they paid £20k for & is now worth millions. 
From my limited experience I do think it has a place, but more the systems that they work within rather than any one coin, although a few will rise from the ashes and dominate. 
That could take 20 years, but I recon the people who are still 'dip buying' cryptos are probably going to be out of pocket or broke by the end of this year.
We are in the 'unease' part of that famous chart i recon.
Im going to start accumulating bitcoin at about $20k and increase position the more hated it becomes if that plays out. Etherium, coinbase, marathon & riot depending on the markets.
I got most of the above from watching alive Michael Sailor video - his eyes say it all he is scared & calling for gold to be banned & working with governments to legitimise crypto - to me a favour. 

Edited March 14, 2022 by Stacktastic

[Bigmarc]

If you are a barber or butcher in Russia, what do you take as payment? If you are in a situation where local currency no longer works properly surely it's in everybody's interest to work out how to take whatever payment is possible. 

[goldsilverdash]

1 hour ago, Bigmarc said:

I started learning about crypto over a year ago. I still have no clue or no idea what is going on, I am on multiple exchanges and have multiple wallets and to be honest it's far to complicated for you average person who lives on your street to understand. I would say it is worth having a go just to understand it. 

I have gold and silver but watching what is happening to Russians with regards to sanctions kind of gets the mind thinking. I read a article that many Russians are going through brokers to change their assets in neutral states like the UAE. So maybe currency from neutral states might be a good idea. I have a app that can change it up in seconds but is that good enough? Who knows. 

Indeed, crypto is still too difficult to use for the average person. This is one of the reasons for which Dash is my favourite cryptocurrency. Dash is explicitly aimed towards becoming "so easy to use that your grandmother can use it". Transactions on the Dash network are already much faster and have much lower fees than Bitcoin transactions, and soon it will be possible to send to usernames instead of to long addresses of random characters. Improving the user experience is needed before crypto can ever appeal to the wider population, I believe.

[goldsilverdash]

11 minutes ago, Bigmarc said:

If you are a barber or butcher in Russia, what do you take as payment? If you are in a situation where local currency no longer works properly surely it's in everybody's interest to work out how to take whatever payment is possible. 

I would take silver coins or crypto currency, and possibly also foreign fiat currency.

[Bigmarc]

1 hour ago, goldsilverdash said:

Indeed, crypto is still too difficult to use for the average person. This is one of the reasons for which Dash is my favourite cryptocurrency. Dash is explicitly aimed towards becoming "so easy to use that your grandmother can use it". Transactions on the Dash network are already much faster and have much lower fees than Bitcoin transactions, and soon it will be possible to send to usernames instead of to long addresses of random characters. Improving the user experience is needed before crypto can ever appeal to the wider population, I believe.

I think one of the problems other than how complicated it is, is that many coins (including dash I think) evolved out of the dark web. For the masses to except it , it has to be trusted and in the current way the whole 5000+ cryptos that are available it's just pure speculation and gambling. I have no doubt there will be a use case in the future but currently it's a no. 

1 hour ago, goldsilverdash said:

I would take silver coins or crypto currency, and possibly also foreign fiat currency.

A lot of these threads are all about how to preserve what you have. But actually thriving in a situation where there are sanctions or currency devaluation I think is the key. Others have stated before about items or real value and maybe a skill to learn. 

I have a friend who works quite high up in a water company and before this Russia Ukraine thing started they had about 200 attempted cyber attacks a day. Now they are getting in average 17000 per day. I think just a few days without water in our world would make some realize that their Porsche on the driveway isn't worth as much as they thought it was.

[Minimalist]

15 hours ago, SilverStorm said:

A popular Telegram group is advising people to withdraw all their savings, convert cash into dollars or euros

So let me get this straight, the Post based their findings on an app which advised Russians to convert into Western currencies which the Russian Central Bank does not permit. Pure propaganda. 

[SilverStorm]

4 hours ago, Bigmarc said:

If you are a barber or butcher in Russia, what do you take as payment? If you are in a situation where local currency no longer works properly surely it's in everybody's interest to work out how to take whatever payment is possible. 

Agree with your comment.  Venezuelans did use gold flakes to barter for goods & services, so we'll need to wait and see if the Russians will also adopt the same bartering method.  

 

5 hours ago, Stacktastic said:

i was thinking that although a decent limited edition Rolex would not be a bad long term shout as you can cross borders with it, but it shouts 'mug me please'.
Surely buying bags of rice, salt, alcohol, coffee & things that might become scarce would be best - especially the rice as you can eat it.
I would have had a lpallet delivered months back if I was russian & they know from experience how things can turn.
combine the weather & government its a potentially deadly situation for the average joe. 
My guess is that gold is probably sky high on the premiums now from dealers due to demand. 

Im in a cash position but then again I know what to do with it when the time is right. 
That time is not now.  

 

Having cash on hand is a good idea.  If SHTF scenario, everyone is running to ATMs to withdraw cash.  And there won't be enough for everyone that wants it.

 

7 hours ago, MJCOIN said:

I am concerned about crypto for many reasons.  Mainly because I don't understand it.  Also, what happens if you can't get online because there's no power or you don't have an internet connection or you forget your password or any other number of reasons?

For me, crypto is a big no.  For others who know more about it I'm sure they are comfortable with their position.  Each to their own.

Agree with your assessment.  If crypto is a true store of wealth, it would have sky rocketed to new heights by now.   

[SilverStorm]

1 hour ago, Minimalist said:

So let me get this straight, the Post based their findings on an app which advised Russians to convert into Western currencies which the Russian Central Bank does not permit. Pure propaganda. 

Don't shoot the messenger, I just cut and paste.  

Do you know if Russian ATMs carry foreign currency?   If they do, then it is not out of the realm of possibility for Russians to exchange Rubles for western currencies.   I'm not familiar with Russian banking systems, so perhaps what you say is true.  But whatever the case may be, the point I was trying to make is that one should prepare for such an eventuality (i.e. fiat currency collapse).   And therefore the immediate need to prepare for this eventuality by holding and stacking PMs.

[Bigmarc]

13 minutes ago, SilverStorm said:

Do you know if Russian ATMs carry foreign currency?   If they do, then it is not out of the realm of possibility for Russians to exchange Rubles for western currencies

There are restrictions in place but businesses still need to operate. 

https://www.reuters.com/world/europe/russia-central-bank-restricts-firms-access-cash-hard-currency-2022-03-10/

[Minimalist]

23 minutes ago, SilverStorm said:

Don't shoot the messenger, I just cut and paste.  

I never mentioned you in my post, I stated the Post, dont claim the victim.

23 minutes ago, SilverStorm said:

Do you know if Russian ATMs carry foreign currency?   If they do, then it is not out of the realm of possibility for Russians to exchange Rubles for western currencies.   I'm not familiar with Russian banking systems, so perhaps what you say is true.  But whatever the case may be, the point I was trying to make is that one should prepare for such an eventuality (i.e. fiat currency collapse).   And therefore the immediate need to prepare for this eventuality by holding and stacking PMs.

From what I have learned, the BIS removed the Russian central bank from transacting on asset purchases and transactions that require western currencies (euro and dollar). In response to this Putin ordered Banks to take in Rubles while all outstanding debt owned to the West will be repayed in Rubles whether the West likes it or not. I mean, the Post covered this and now AFTER this has been posted they have came out with this. Its pure dis-intent propaganda to push an agenda.

As for the "currency collapse", Russia has stated on record that their Gold holding will see them out no problem. And they have the Gold. If this was us, in the West, I doubt we actually have enough.

I mean, myself and other members have been discussing this scenario over fiat for years and people on here have the audacity to raise it concerns over Russia when they are stacked to the heavens with Gold. I mean the lack of self awareness is astounding.

Edited March 14, 2022 by Minimalist
West

[dicker]

As per usual, it won’t be the politicians who suffer it will be the Russian people.

Putin is reputed to be worth perhaps $200bn dollars.  Must be a smart investor as he only earns around 140k per year. So it won’t impact him.

I visited Russia on business In 2009 and was given a briefing on how Russia worked - I won’t repeat here but the briefing was, I shall put it “enlightening” and eye opening.  Company phones, laptops were banned from going into Russia and we were advised to leave smart phones in the U.K, plus take other precautions.

 

[Minimalist]

2 minutes ago, dicker said:

As per usual, it won’t be the politicians who suffer it will be the Russian people.

Correct, its happening here as well. Did you see the diesel prices?

2 minutes ago, dicker said:

Putin is reputed to be worth perhaps $200bn dollars.  Must be a smart investor as he only earns around 140k per year. So it won’t impact him.

What assets are the $200billion?

3 minutes ago, dicker said:

I visited Russia on business In 2009 and was given a briefing on how Russia worked - I won’t repeat here but the briefing was, I shall put it “enlightening” and eye opening.  Company phones, laptops were banned from going into Russia and we were advised to leave smart phones in the U.K, plus take other precautions.

That is a huge claim, do you have any proof of this?

[dicker]

7 minutes ago, Minimalist said:

Correct, its happening here as well. Did you see the diesel prices?

What assets are the $200billion?

That is a huge claim, do you have any proof of this?

Working for a bank and being told not to talks laptops and work phones to Russia?  Was standard in 2009 for people visiting Russia.  The briefing was not standard but in the context of the visit it was important.

 

 

[Minimalist]

29 minutes ago, dicker said:

Working for a bank and being told not to talks laptops and work phones to Russia?  Was standard in 2009 for people visiting Russia.  The briefing was not standard but in the context of the visit it was important.

Okay. Im just asking for proof, this shouldnt be a problem, right?

[dicker]

3 minutes ago, Minimalist said:

Okay. Im just asking for proof, this shouldnt be a problem, right?

It was standard procedure, and I suspect still is. It wasn’t the only country. I’m not sure how to prove this but I have shot (grouse, Scotland) with a partner at a magic circle law firm last year who was similarly restricted.  

[Minimalist]

1 minute ago, dicker said:

It was standard procedure, and I suspect still is. It wasn’t the only country. I’m not sure how to prove this but I have shot (grouse, Scotland) with a partner at a magic circle law firm last year who was similarly restricted.  

Batter in. Send it through PM if you wish.

[dicker]

Batter in?

[Minimalist]

1 minute ago, dicker said:

Batter in?

Scottish for "go ahead"