This is information from The Daily Crux. It is very interesting food for thought.
What do you think?
“We all know it’s going to happen…
China’s currency, the yuan, will soon be backed by gold.
And when that happens, it will likely push the U.S. dollar off the top of the heap.
Europe and China already have a $57 billion deal set up to do business together without U.S. dollars. That’s the largest deal of its kind for China. And if China plans to back the yuan with gold, it certainly won’t be the last.
The trouble is, China’s official gold holding was just 1,054 metric tonnes in 2009 (about 33.9 million ounces). That’s nowhere near enough gold to back its currency. The country spent the last five years importing literal tonnes of gold. It imported about 645 tonnes from Hong Kong alone.
China’s domestic gold miners have produced 3,072 tonnes since 2004. With its imports, that means the country has nearly 4,000 tonnes of gold for sure. But it’s likely much higher…
According to multinational information firm Thomson Reuters, China is the buyer for all the gold sold from giant exchange-traded funds (ETFs). In 2013, physical gold ETFs sold nearly 800 tonnes of gold in the form of 400-ounce bars. Swiss refiner Argor-Heraeus converts these 400-ounce ETF bars into 1-kilogram bars. And about 70% of those bars went to China.
This is a huge story. The question is, when will China drop the curtain and show the world how much gold it’s actually acquired?
The rumor is April 2014… five years after its last official statement about its gold holdings.
If that’s the case, we could see the world’s current financial powers turned on
their head in just four months.
We all know it’s going to happen…
China’s currency, the yuan, will soon be backed by gold.
And when that happens, it will likely push the U.S. dollar off the top of the heap.
Europe and China already have a $57 billion deal set up to do business together without U.S. dollars. That’s the largest deal of its kind for China. And if China plans to back the yuan with gold, it certainly won’t be the last.
The trouble is, China’s official gold holding was just 1,054 metric tonnes in 2009 (about 33.9 million ounces). That’s nowhere near enough gold to back its currency. The country spent the last five years importing literal tonnes of gold. It imported about 645 tonnes from Hong Kong alone.
China’s domestic gold miners have produced 3,072 tonnes since 2004. With its imports, that means the country has nearly 4,000 tonnes of gold for sure. But it’s likely much higher…
According to multinational information firm Thomson Reuters, China is the buyer for all the gold sold from giant exchange-traded funds (ETFs). In 2013, physical gold ETFs sold nearly 800 tonnes of gold in the form of 400-ounce bars. Swiss refiner Argor-Heraeus converts these 400-ounce ETF bars into 1-kilogram bars. And about 70% of those bars went to China.
This is a huge story. The question is, when will China drop the curtain and show the world how much gold it’s actually acquired?
The rumor is April 2014… five years after its last official statement about its gold holdings.
If that’s the case, we could see the world’s current financial powers turned on their head in just four months.”