China is Taking Gold Public
China is Taking Gold Public
Part 1: China's Dilemma
Housekeeping: This is a multi-part series to be released over a period of a week or so. The market situation is fluid, the material assembled is both broad and deep, and the info keeps trickling in over different time zones. Instead of a single 10,000 word article, a few 1-2k word articles will be posted.
Topics Touched
What follows is a jumping off point1 (as opposed to a solution-set) for further analysis in what has become a dynamic situation subject to much discussion in the metals community. It also seems to be (strangely) affecting every market in the world *except* US Comex Gold prices.
Some topics to be covered in this multi-part series
From Nixon to Biden: Growth and relationship deterioration between China the US.
The GFC and changes observed.
Similarities to how China got into the SDR and WTO
Recent Global appetites for Gold and Silver
China’s current economic problems
Markets involved: DX, RMB, TSY, Gold, Oil
Macro, Secular, and mechanical perspectives when knowable.
Anything else that pops up
This will tie Finance, Geopolitics, and History together in an attempt to figure out what is going on and how will it effect Gold and Silver.
**This footnote2 includes a disclaimer**
Not only is China ravenously buying up all the physical gold it can get its hands on….more importantly, it is letting the world know it is buying up all the physical gold it can get its hands on [this time] .
ZeroHedge Aug 8, 2023
Part 1: China’s Dilemma
Assumptions stated:
China has made it clear they and the BRICS wish to divest themselves of USD as a reserve currency for at least their regional natural resource business transactions.
Their reason for this is: due to the combination of USD soft-mandated use and their own natural resources being priced in USD, their resources and thus their own currencies are grossly and chronically undervalued.
China is potentially dealing with a chronic, deep economic problem that may push up or delay its timetable for numbers 1 and 2. This could also lead to mass liquidations of assets they hold, including Gold.
Bonus: EOD Color on Equities from the GS trading desk