Soviet Union Collapse in gold reflection

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R.US's picture
R.US
Status: Member (Offline)
Joined: Aug 31 2009
Posts: 10
Soviet Union Collapse in gold reflection

I seldom visitor but with all my respect for an idea and goal of CM virtual community let me share my personal experience and observations. I do not want to make any prediction or accent on similarity. 

 Gold price for a gram:

  • 1982 (10 years before collapse) 40 rubles
  • 1988  (pre-collapse time) 80 rubles
  • 1992  (shift to marker) vary
  • 1998  (market) 80000 old-rubles (8-NEW RUBLES)
  • 2008  (The Peek) 800 RUBLES
  • 2010  (After Recession) 1400 RUBELS 

1988-1998 1000 times! What the perfect store of values! Gold forever! It is the best!!

1998-2008 100 times! Gold still works as perfect wealth protection! 

1988-2008 100’000 times. Very impressive. You may say this is the best investment and wealth protection. This is correct with a small correction:

1992-1994 - The dark age of the market. The BARTER TIME. Money virtually did not exist that time. It was some kind of money and that money event work as a media of exchange but with inflation 200% a year not one want to keep them. You spend all your money the same day you get it. The best media of exchange and the king commodities for keeping was Vodka and Cigarets. Vodka quickly get a perfect definition: the liquid currency.

Gold was also very desired commodity but with wide gold scam rate the usage was limited. So if you have some gold you was lucky since cash4gold was very easy to find. Gold exchange was swift and easy. But the exchange rate was awfully bad.

For ordinary people it was almost impossible to avoid losing all personal gold in 1992-1994

Conclusion:

Gold was/is/will be the best wealth preserver. You will definitely benefit from owning some gold stash if you will able to protect it from bankers/mobsters and especially government.

Based on my previous experience I will only invest in health, education and skills.  In face of uncertainty you should be ready to lose everything and move on without regret. I would be happy to make some gold/silver stash but afraid it may cause me a life.

I dream to have 1000 toz of silver and 50 toz of gold in some undisclosed location far away from my home. It would be a perfect little capital to start with when new reality settles.

Ken C's picture
Ken C
Status: Platinum Member (Offline)
Joined: Feb 13 2009
Posts: 753
Re: Soviet Union Collapse in gold reflection

Scott,

 

Welcome to the forum and thank you for the first hand information about Soviet Union.

 

Ken

 

jrf29's picture
jrf29
Status: Gold Member (Offline)
Joined: Apr 18 2008
Posts: 453
Re: Soviet Union Collapse in gold reflection

This is a very interesting post.  Thanks for sharing it.  I found your reference to the heavy discounting of gold during the time when there was no functioning currency to be particularly interesting.  It is fascinating that the economic turmoil harmed the exchange value of gold before it harmed the exchange value of cigarettes and vodka.

Your response is also interesting in another way: people who have money invariably obsess about how to preserve it.  But people who have lived through a major crisis that has wiped out their wealth (like Dmitry Orlov) invariably decide that there are other things (like skills, health, education, community) that are far more important to survival than money.

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