MUST READ: CHINA MAY BE TAKING GOLD PUBLIC
Why Is China Hoarding Gold Again?
Today is our day off, but this just came across and we wanted you all to see it before we wrote on it.
Early this morning Bloomberg did a post describing the “who” bought all the gold recently, but not the why.
TD Securities did a more comprehensive report on it today1, including the “why” part. That is included below
Just now Zerohedge also posted a write up of it. In doing so they also provide insight as why this gold is being hoarded.-link
TD gives four interesting reasons why this accumulation may be occurring. GoldFix gives a 5th.
TD ASKS: WHY BUY NOW?
Reserve Currency Ambitions
Chinese Reopening Demand
Restocking for Chinese New Year
We add a fifth reason given our previous stalking of Chinese gold behavior since 2017. Keeping in mind it can be any or all of the above reasons we add the following:
China has blockchain. China has retail demand bottled up. China is in a very good position to give their domestic demand access to physical Gold using blockchain. in doing so they would help their CBDC, drive gold prices to the more proper level, and cannot be blamed for anything untoward.
In fact we sort of predicted this type of eventuality in 2017, where the Chinese government would be more forceful in directing its people to buy Gold:
China “Owns Gold Through its People"
That is a direct quote from a Chinese banking official. What does that even mean? It means that China has directed its citizens to be buyers of Gold. Every swoon in Chinese stocks brings more Chinese gold buying. The Yuan's inclusion in the IMF SDR and China's subsequent pitching an SDR bond to its people is also a potential Gold play. China is using its companies, exchanges, banks and people as piggy banks for when it needs its Gold. Then it will likely confiscate it "for the good of the country" Source
Take this very seriously: When we say in combination with any of the factors above, China may be getting ready to unleash the retail hordes of their BRICS public into Gold and Silver now.
Most recently we noted the possibility here: How The East Will Buy Gold for the Next 100 Years
Just recently Russia and China made it clear they would make a gold product available using blockchain. While we are not 100% sure, we are 99% sure this is in their wheelhouse to do right now.
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