2023-07-30

How to use paper gold contracts to bypass Western sanctions on Russian oil

Countries that want to move away from the dollar should use paper gold contracts sold by the Shanghai gold exchange. The buyer and seller can trade in the paper gold contracts using the Chinese Yuan or any free-floating currencies already in their reserves.

Just as Big Bullion dealers use paper gold contracts to artificially depress the price of physical gold, India and other countries can use paper gold contracts to bypass restrictions on using dollars for paying Russian oil companies.

1. Indian oil companies use Yuan or US dollars to buy paper gold contracts on the Shanghai gold exchange.
2. The Indians transfer their rights of the paper gold contracts to Russian oil companies from whom they import oil.
3. The Russians then
   • sell the gold contracts on the exchange for Yuan, dollars or any other free-floating currency offered by the gold exchange, or
   • take physical delivery of the bullion and then sell the bullion
     • to anyone for dollars, euros or Yuan, or
     • to Russian importers of other goods who will pay them in roubles