Russian Security Council Secretary and one of Putin’s closest political allies, Nikolai Patrushev, said Russian forces are fighting U.S.-led NATO forces in Ukraine. Patrushev also told the Moscow newspaper, Argumenty i Fakty, “The events in Ukraine are not a clash between Moscow and Kyiv - this is a military confrontation between Russia and NATO, and above all the United States and Britain.”
Patrushev is a hard-liner from the Soviet era who worked as a K.G.B. spy during the 1970s alongside Putin. Patrushev repeatedly makes Soviet-style incendiary remarks about the West. “The American state is just a shell for a conglomerate of huge corporations that rule the country and try to dominate the world,” said Patrushev. Military intelligence believes Patrushev is one of the three people who convinced Putin to invade Ukraine and has convinced Putin that Russia should win at any cost. Patrushev has been advising Putin to make a preemptive strike against NATO countries before it is too late.
Are there NATO boots on the ground?
No NATO country admits to having boots on the ground in Ukraine, but denial is not proof of their absences. Since the invasion began, countless foreign fighters have joined Ukrainian troops, with several posting updates on social media. Russia has repeatedly pointed to the mercenaries as contact points for NATO forces and Ukrainian forces. The picture is of American Rob-Roy Lane from Idaho. He is embedded with Ukrainian troops and frequently posts videos on social media. Lane described several "volunteers" from different countries, including British nationals, in his unit. The D.O.D. will not comment on whether Lane has ever served, and the U.K. Ministry of Defense won't comment on its nationals in Ukraine. Thousands of people like Lane from around the world are helping Ukrainian forces. The people may or may not all be private citizens. Still, there is enough ambiguity around their presence that Russia can use them as “proof” of boots on the ground.
Several NATO countries admit to arming, training, and funding the Ukrainian troops. The U.S. just agreed to send at least another $48 billion to Ukraine. The U.S. Department of Defense gave a Patriot Missile defense system. It will bring around 100 Ukrainian soldiers to Fort Sill, OK. The U.S. Army will train the Ukrainian soldiers how to use it. The Russian ambassador claims the $1.85 billion worth of Patriot missiles and training is evidence of direct U.S. involvement in Ukraine. Training a military is very different from just funding it. Putin has vowed to destroy the Patriot Missile Defense System.
France is sending armored vehicles classified as light tanks to Ukraine. Britain is sending about a dozen Challenger 2 main battle tanks. France and Britain are pressuring Germany to send their modern Leopard 2 tanks to Ukraine. The countries likely have assets on the ground to monitor their investments and contributions. Still, it doesn’t matter if NATO has boots on the ground. Russia perceives the West as part of the conflict and will consider NATO aggressive militaries.
Both sides anticipate war. The official position of the Kremlin is that the U.S. and NATO are a part of the Ukrainian conflict. The official position of NATO is "The Russian Federation is the most significant and direct threat to Allies' security and to [sic]peace and stability in the Euro-Atlantic. NATO has at least 40,000 troops stationed in the surrounding region, including the Baltic States and Poland. In June, NATO put another 300,000 troops on high alert. There have been no announcements those troops were to stand down.
It is only a matter of time before Russia responds to the Ukrainian defense supply chain. However, the West may be misreading Russia. Russia probably wants as many countries as possible to send their latest, most technologically advanced weapons to Ukraine to create a situation like Afghanistan.
The U.S. left hundreds of billions of weapons, technology, and equipment in Afghanistan. The windfall of $85 billion worth of weapons made the Taliban the third best-funded military in 2021. The West is playing a dangerous game in which they don't seem to know their enemy's rules or objectives. Russia may create a situation that makes the world think they are retreating to provoke the chase. Then Russia would unleash Armageddon to seize all the foreign weapons and technologies.
How does this affect gold prices?
War and military conflicts have a reliable track record of pushing gold prices significantly higher. In 1977, gold prices rose 23% as the world speculated about the Iranian Revolution and 126% in 1979 after the start of the Iran/Iraq war. As a result of Operation Desert Storm, gold prices boomed again. After 9/11, gold spiked 33% over the coming two years. Gold prices grew nearly 400% in eight years following the start of the Iraq war. In January 2020, Iran fired missiles at a U.S. base in Iraq after the killing of Iranian general Solemani. The price of gold jumped $91 in six days . War has a predictable correlation to the gold price.
Russia knows this. China knows this. Central Bankers know this. Every gold bug ever knows this. Driving the gold price up may be Russia's end-game strategy because that is how Russia wins and the Dollar loses.
Russia pegged the Rubble to gold in May 2022. Russia has been the largest net buyer of gold for nearly two decades followed closely by China. Russia and China are members of the BRICS. The BRICS want international trade made with currencies backed by commodities, specifically gold and oil. China and Russia are the two countries that benefit the most from high gold prices. Russia is warring with Ukraine, and China is posturing against Taiwan.
Russia is saying NATO has forces in Ukraine. NATO will declare war if Russia attacks France or Britain, even in self-defense. It would only take one incident against a NATO country to start WWIII. Article 5 of the NATO charter says any attack on a NATO member in Europe or North America “shall be considered an attack against them all.” Article 5 has only been invoked once in history, following the attack on 9/11, which led to the Iraq and Afghanistan wars and gold going parabolic.
The U.S. thinks it wins the war by stopping Russian aggression. Russia and China win the war by creating a higher gold price. It is hard to win a war if you don’t know what to protect. We need to protect our money! There is a proverb that says, “the borrower is a servant to the lender.” All U.S. currencies is created as debt. Debt has put the U.S. in a very precarious situation to our lenders giving Russia the leverage it needs to overthrow the Dollar. If the U.S. government wants to take away Russia’s leverage in the war, they should stop overspending and devaluing the Dollar.
Neither Iraq nor Afghanistan could mount a sustained attack on American soil. Still, the uncertainty of those wars caused the markets to seek the safety of gold and pushed the price up 400%. Russia and China do have the capability of sustained attacks on American soil and interests abroad. If NATO gets entangled militarily in Ukraine, what would the resulting gold price be eight years later?
Will gold be in your safe or still on your "to-do" list the next time a military conflict spikes the price by 400%?
Call the U.S. Gold Bureau Today