Loading ...The Winners And Losers Of The Ruble’s Fall
Gold miners and ETFs
The ruble’s dive in 2014 is similar to the ruble’s dive in 1998. The Russian government ultimately defaulted on its debt in 1998, and the default created unpredictable systemic consequences such as the downfall of Long Term Capital Management. If the Federal Reserve/Wall Street hadn’t bailed out LTCM, the entire financial system might have collapsed.
If investors fear that the Russian government will default on its debt again, investors will fear black swan events and flee to safety. Because of the flight to safety, gold will likely rally. If gold rallies, everything gold-related from gold miners to gold ETFs will rally.
Full article:
http://seekingalpha.com/article/2761815-the-winners-and-losers-of-the-rubles-fall