“Pozsar also said that at current market prices, ‘the cap of $60 per barrel for Russian oil equals the price of a gram of gold.’ In a hypothetical that US pegs Russian export at this price and Russia then pegs it at a gram of gold, ‘the US dollar effectively gets ‘revalued’ versus Russian oil.’”
USAGOLD note: Pozsar talks about the price of gold doubling to $3600 on the basis of Russia offering two barrels of oil for one gram of gold (instead of one gram per barrel, the current price when paid in dollars). “Crazy? Yes.” says Pozsar. “Improbable? No.” Bringing gold into the oil-pricing regime would not be impossible to contemplate given that many of the global exporters have an attachment to the metal. Note Ghana’s recent oil for gold offer being snapped up immediately by the United Arab Emirates.