Russian citizens should be rushing to Gold.
While the Russian elite are able to hide their money in western markets and avoid any massive declines of the Russian currency that is anticipated with sanctions, the ones not so lucky though can only buy gold to preserve the wealth they have.
"Mr Putin has tried to reduce the elite’s vulnerability to sanctions by warning it to repatriate its money and even passing a law banning the ownership of foreign bank accounts by Russian officials. Yet there is little sign those measures have had any effect, and Mr Putin’s actions are bound to damage the wider Russian economy. They will accelerate capital flight, raise the cost of borrowing and restrict new investment. This could lead to a fall in the value of the currency and in living standards."
According to Geoffrey Pike of Wealth Daily, if the US imposes sanctions on Russia Mr Putin can counter it by announcing that Russia will sell off all of its US government debt.
Russia’s holdings of about $140 billion in U.S. Treasuries. If Putin and the Russian government do take this action, it could mean a significantly weaker dollar. It would depend if some of the heavier hitters were to follow suit.
Regardless of what happens here, it is likely to be bullish for gold, silver, and maybe oil. This will be even more pronounced if the Russians really do start selling U.S. government debt.
U.S. politicians are trying to act tough and show Putin who's boss. But they are forgetting that the Russians are paying for part of their deficit spending. It may not be much, but it doesn’t take much to start a new trend. In this case, the trend would be getting away from using the dollar as the world’s reserve currency.