What the Recent Ban on Russian Gold Means for Investors

[Inside Wall Street with Nomi Prins]( Welcome to Inside Wall Street with Nomi Prins! It’s the only daily newsletter featuring the insights of renowned author and former Wall Street insider, Nomi Prins. Every day, Nomi shines a light on a massive wealth transfer she calls The Great Distortion. That’s the true cause of the permanent disconnect she sees between the markets and the real economy. And she shares ways you can come out ahead, if you know where the money is flowing. You’ll find all Nomi’s Inside Wall Street issues [here](. If you have questions or comments, send Nomi a note anytime [here]( or at feedback@rogueeconomics.com. What the Recent Ban on Russian Gold Means for Investors By Nomi Prins, Editor, Inside Wall Street with Nomi Prins I’m sure you’ve heard the news by now… The U.S., the United Kingdom, Japan, and Canada will ban new imports of Russian gold. It’s part of the West’s sanctions in response to Russia’s invasion of Ukraine. The move severs the link between Russia and the world’s top gold-trading centers, London and New York. The announcement was made as President Biden and other G7 leaders gathered for meetings last week in Germany. It builds on steps already taken to cut Russia off from the international financial system. Western powers had already banned most trade with Russia and frozen hundreds of billions of dollars of its assets. They had also [blocked Russian banks from using the SWIFT messaging system]( that underpins international payments. Now, I’m sure those of you who hold gold in your portfolios will want to know how this latest ban will affect your investment… So today, I want to talk about what this ban means. Recommended Link [Be Warned: Fill Up While You Can, America…]( [image]( Something is about to happen to your neighborhood gas station. Get in front of this federally mandated nationwide rollout… [Click here now.]( -- Why Ban Russian Gold? Russia is the second-largest producer of gold. According to a report by S&P Global Commodity Insights, it produced 333 metric tons of gold in 2021. This was 11% of the world’s total output. And recently, it has been cranking up the mining of new gold to compensate for some of its paralyzed assets. The Russian government uses its gold reserves to support its currency, the ruble. Wealthy Russians have also been buying bullion to reduce the financial impact of Western sanctions. The West wants to crack down on all that. U.K. Prime Minister Boris Johnson underscored the point, saying the ban would “strike at the heart of Putin’s war machine” and “directly hit Russian oligarchs.” [Featured: The media is right about one thing – we are about to witness a huge economic crisis…]( Boon for the Gold Market? So, how has this announcement affected your gold portfolio? Typically, cutting off 11% of the world’s gold supply would have a big impact on the gold price. And it did initially climb marginally on the news. But Russia’s gold exports had already been shunned by some key market players since its invasion of Ukraine. For instance, on March 7, the London Bullion Market Association (LBMA) suspended dealing by Russian gold miners and refineries. LBMA is the world’s largest and oldest market for trading physical gold and silver. In other words, Western sanctions had already largely closed off European and U.S. markets to gold from Russia after its forces crossed the border with Ukraine. So the price bump on the announcement of the recent ban was minor and temporary. Also, the import ban will only apply to newly mined or refined gold. So gold that’s already sitting in Russian vaults remains unaffected. And the ban doesn’t apply to gold previously mined and exported from the country. Finally, not all the major Western countries are on board. The leaders of the other G7 nations, France, Italy, and Germany, said they wanted further discussions with European Union partners before making a decision. In sum, I view the decision by the U.S., the United Kingdom, Canada, and Japan to ban new gold imports from Russia as mainly symbolic. Russian gold had already been restricted by sanctions. And markets had already priced that in. So I don’t see this – or any further ban by, say, France or Germany – having a major impact on the gold price in the weeks and months ahead. Recommended Link [Prepare now for a dollar overhaul]( [image]( The White House has just released an Executive Order that would completely overhaul our entire financial system. Unprepared Americans could be blindsided as soon as September 9th. But folks who can see the writing on the wall could multiply their nest egg by 1,000% or more as this plan is rolled out. [Go here to see how to prepare for this monumental shift while you still can.]( -- Why Gold Still Has a Place in My Portfolio But there are important reasons why I still like gold. As I told you [earlier this year]( throughout history, gold has been a proven hedge against inflation. You can see the correlation between the gold price and the Consumer Price Index (CPI), the U.S. government’s inflation benchmark, in this chart. [Chart] The gold price and inflation moved largely in lockstep in the 1970s and 1980s. And while the relationship has become less defined in more recent years, it has still held. Now, as we all know, inflation has taken off in the last 12 months. At over 8%, we’re living with a level of price inflation we haven’t seen in four decades. So, why hasn’t gold followed suit? Since July 2021, it’s up less than 1% on the LBMA. It’s an important question. And as I explained recently in response to a reader’s question, [the gold price faces some major headwinds]( from the strong U.S. dollar and the Federal Reserve’s 1.5% interest rate hike so far this year. [Featured: Expert: “Move your money before September 9th”]( Now, I do think the dollar will stay strong relative to gold. And that might weigh on gold in the very near term. But let’s compare gold’s performance with the performance of the major stock market indexes. The Dow is down about 10% over the last twelve months. The S&P 500 is down roughly 12%. And the Nasdaq has fallen nearly 23%. So in comparison, gold has held up pretty well amid the market turbulence of the last year and rising inflation. And right now, playing defense in your portfolio is an important strategy. Recommended Link [Trading Millionaire Reveals, “2008 Was My Most Profitable Year”]( [image]( If you’re fed up and stressed out with what’s happening in America, you’re not alone. Even the NY Times reports, “A Tidal Wave of Bankruptcies Is Coming” – that could create a historic market crisis like we saw in 2008. So, let me ask you a question… Do you think things will get MORE or LESS uncertain from here? Either way, Jeff Clark couldn’t care less... Because all this volatility presents one of the best opportunities he’s seen since 2008… when he used [ONE stock to become financially free.]( He simply IGNORES 99% of the entire stock market… And still delivers 100%, 373%, and [390% gains in just 8 days]( in bullish AND bearish markets. He’s used this secret to help 170,000 regular folks see [triple-digit gains over 48 times]( and double-digit gains over 81 different times. Now it’s your turn. [Click Here To Get The Name of The Stock, FREE.]( -- What This Means for You and Your Money Gold has a long, proven track record as a store of wealth. So, whatever happens next in the West’s standoff with Russia, I recommend holding gold in your long-term investment portfolio. One of the simplest ways to do this is to buy physical gold. You could start by buying the most popular gold bullion coins. These include American Eagles and Canadian Maple Leafs. Just keep in mind, coins are typically priced at a premium to the gold spot price. Gold bars are another great option. They have lower premiums than coins. Now, the main drawback of investing in physical gold is that coins and bars need to be stored. Doing it safely could mean an additional cost. So, if you’re new to investing in gold, another way to get exposure to the metal is through a gold exchange-traded fund (ETF). A gold ETF invests primarily in hard gold assets. And you can buy it through your brokerage account. Consider the SPDR Gold Shares ETF (GLD). It closely tracks the price of the metal. It offers convenient exposure, without the worry or extra cost of storage and security. The fund is listed on the New York Stock Exchange. So you can buy it through your brokerage account. Until tomorrow, Regards, [signature] Nomi Prins Editor, Inside Wall Street with Nomi Prins P.S. There’s another way to play defense in your portfolio during volatile markets. For the last two years, I’ve been developing a new strategy to do this. It’s based on the same type of strategy that big banks paid me millions to develop during my 15 years on Wall Street. It’s called Distortion Money Matrix. And it can help you make money even when the market is down. Readers who tested this strategy during the 2020 market crash were able to make up to 8x their money… in a matter of weeks. To find out more about my new strategy, [click here](. --------------------------------------------------------------- Like what you’re reading? Send your thoughts to [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=Inside Wall Street Feedback). --------------------------------------------------------------- MAILBAG Silver is [another inflation hedge Nomi has written about recently](. As she explained, it’s a key component in some of the technologies involved in the New Energy transition. So she believes the next few years could be huge for silver. Reader Thomas B. is also a fan… and he shares his approach to investing in the precious metal… Your views on silver are much like mine, in that it is a metal with many uses in electronics and other industrial applications. I personally feel that silver's price is undervalued and will begin to increase in the coming years. It is not a resource which is unlimited in terms of availability. The spot price of silver has been manipulated by banks and large firms. I have always felt that the real value of any metal is having physical possession of the item or items. I started collecting coins when I was eight years old. Like many collectors, I looked for coins I could find in circulation. In 1998, I began to look through rolls of half dollars I would get from local banks. To my surprise, I started finding both 40% and 90% silver half dollars in some of these rolls. In 2003, I took a number of my 40% coins and traded them for two 1 ounce Gold American Eagles. The spot price for silver was $4.40 per ounce and the spot price for Gold was $385 per ounce. These prices really seem cheap by what these coins sell for today. I still have the silver coins I found and have bought more over the years. Silver coins were once readily accepted as money and I have reason to think they could be again in the future. It would not take too long for people to begin to see and feel the difference in a 90% silver coin and one made of copper-nickel. Banks can close and ATM machines could be not working when you need them. A store of cash and silver coins would allow someone to buy the items they really need like food, gas, medicine, and clothing. I try to remain prepared in case a need arises. – Thomas B. Do you agree with Nomi that silver and gold provide good protection against inflation? Have you considered what you might do if you can no longer access the money in your bank, as Thomas warns? Write us at [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=RE: What the Recent Ban on Russian Gold Means for Investors). IN CASE YOU MISSED IT… [If the talking heads in the mainstream media have you seeing ghosts of 2008...]( You’ll want to pay close attention... A former Wall Street managing director who walked away from a million-dollar career, Nomi Prins is now a prolific author and one of the world’s most respected Investigative Journalists. You might recognize her from appearances on Fox Business... CNBC... Bloomberg... PBS... or CSPAN... She’s exposing a bombshell story about a strange phenomenon in our financial system... A $150 trillion transfer of wealth she calls "The Great Distortion", could soon trigger a historic windfall for some Americans... 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