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<p>[QUOTE=&quot;gxseries, post: 26716342, member: 4373&quot;]Cheap oil price is much needed to crush the Russian economy as well as revive the global economy. What&#039;s absurdly rotten is that if you account for inflation, CRUDE oil is much cheaper compared to a decade ago. It&#039;s bluntly clear that cooperate greed just doesn&#039;t pass savings down to consumers. I rather have cheaper living expenses compared to elevated metal prices. (ok a bit off topic) </p><p>&nbsp;</p><p>I do not believe articles where journalists claim the Russian economy is about to collapse. Writing sensational articles of what the West wants to believe in but has yet to happen. That is almost 4 years straight. Much easier to listen to a broken record on repeat. Right now Russia can just pivot to gold and keep mining aggressively if metal prices remain elevated. Russia does have large amount of natural resources. It&#039;s much easier to smuggle gold out of the border compared to barrels of oil. You can&#039;t tell the source of origin once it&#039;s smelted down unlike crude oil where you can trace chemical composition. </p><p><br /></p><p>The key difference between when the Soviet Union fell and this time around is back in 1990s both crude oil and gold prices were stagnant, if not suppressed. That meant that there was not much value Russia could export back then, effectively bankrupting the country. This time around? Exporting a mere metric tonne of gold is about 165 million USD at today&#039;s price. Even a compact SUV would weigh more than that! Maybe Goldfinger is a good reference. </p><p><br /></p><p>One classic example where high metal prices can backfire in society. One might think high copper price helps to spur mining activities. Yes to certain extent. That encourages &#039;urban mining&#039; and when you get blackout - who pays the price. Last thing I would like to imagine is one ends up stockpiling golden bullets, whether it&#039;s literally or figuratively. </p><p><br /></p><p>Don&#039;t get me wrong. I am not disagreeing about the probability of gold price remain elevated or continue to raise higher in the short term. My genuine concern is the absurdity of investors thinking that high price is a good thing without a care of ethics or moral. Blood diamond comes to mind.[/QUOTE]</p><p><br /></p>

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