Russia's new gold exchange could challenge LBMA and reveal the 'fair' price of gold - Matthew Piepenburg

Russia’s new gold exchange could challenge LBMA and reveal the ‘fair’ price of gold – Matthew Piepenburg

(Kitco News) – The Moscow World Standard, an alternative to the London Bullion Market Association (LBMA), could end gold price manipulation and reveal the metal’s fair market value, according to Matthew Piepenburg, chief trading officer at Matterhorn Asset Management.

Russia is proposing its own international standard for precious metals after it was banned by the London Bullion Market Association (LBMA). The country’s finance ministry said it was “critical” to create a new Moscow World Standard (MWS) to “normalize the functioning of the precious metals industry” and create an alternative to the LBMA.

Russia is also proposing to fix the prices of precious metals in the national currencies of key member countries or through a new currency unit – such as the new BRICS currency proposed by Russian President Vladimir Putin.

“Putin knows as well as everyone else that the LBMA is an open joke,” Piepenburg said. “It is the legalized use of leverage to artificially suppress the price of gold.”

Piepenburg referred to the LBMA banks having “thousands and thousands of leveraged contracts when most of the market is going long” and therefore engaging in an “artificial legalized way” of suppressing the price of gold.

Piepenburg spoke with Michelle Makori, managing editor and lead anchor at Kitco News.

Global currency reset

Once a currency reset occurs, Russia can create a reserve currency backed by a basket of commodities, including gold.

“Russia and the East like things like fertilizer, gold, hay and heavy assets,” Piepenburg said. “As we de-dollarize, as the Petro dollar gets diluted by other exchanges and other businesses, they will do the same to the gold market because it’s real, it’s a monetary metal.”

On the western side of the currency reset, the International Monetary Fund (IMF) is supporting countries in developing central bank digital currencies (CBDCs), programmable tokens issued by a country’s central bank. In February, IMF President Kristalina Georgieva said that CBDCs are potentially better than stablecoins and “uncovered crypto-assets”.

Piepenburg claimed that the IMF will ensure that CBDCs are backed by gold.

“[The IMF has] admitted that for [a CBDC] to have any credibility, they have to have some partial backing with real assets, i.e. physical gold,” he explained. to restructure the debt”.

Piepenburg pointed out that the US has a “debt problem” with a debt-to-GDP ratio of 123 percent.

“The West and the US love the fact that they haven’t had a golden guard since 1971 when Nixon pushed the global gold standard,” he said. “It was a way to have unbridled euphoria with the US dollar.

Piepenburg called the US dollar “mouse-click money” and argued that a Western currency reset would be necessary when “even the most average investor loses faith in central bank optics and double-edged excuses.”


Although he respects “the intellectual argument behind cryptocurrencies in general, or Bitcoin and Ethereum specifically,” Piepenburg said that “Bitcoin is a speculative asset.”

“I think Bitcoin has a standard deviation of 140, while gold has a standard deviation of 17,” he explained. “I think bitcoin’s strength is also its biggest weakness, the fact that it can skyrocket and tank in one breath… that’s the nature of the asset.”

Piepenburg further argued that gold is a more stable store of value than Bitcoin.

“Honey, I think, is much more stable,” he explained. “He’s a better partner than a Playboy polo player, and that’s what Bitcoin is. I could be wrong… [but] Regardless, I still think gold is emerging as a winning asset.”

Piepenburg is very bullish on gold, and for his gold price prediction, watch the video above.

Follow Michelle Makori on Twitter: @MichelleMakori

Follow Kitco News on Twitter: @KitcoNewsNOW

Disclaimer: The views expressed in this article are those of the author and do not necessarily reflect those of the author Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor can the author guarantee such accuracy. This article is for informational purposes only. This is not an invitation to make any exchange for commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept responsibility for loss and/or damage arising from the use of this publication.

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