Dinar Daily
Would you like to react to this message? Create an account in a few clicks or log in to continue.
Latest topics
» Deadly stampede could affect Iraq’s World Cup hopes 1/19/23
China Embraces Gold In Advance Of Post-Dollar Era I_icon_minitimeYesterday at 6:02 am by Ditartyn

» Dave Schmidt - Zim Notes for Purchase (NOT PHYSICAL NOTES)
China Embraces Gold In Advance Of Post-Dollar Era I_icon_minitimeSat Mar 23, 2024 9:25 am by swizzlestick

» ZIGPLACE
China Embraces Gold In Advance Of Post-Dollar Era I_icon_minitimeWed Mar 20, 2024 6:29 am by Zig

» CBD Vape Cartridges
China Embraces Gold In Advance Of Post-Dollar Era I_icon_minitimeThu Mar 07, 2024 2:10 pm by Arendac

» Classic Tony is back
China Embraces Gold In Advance Of Post-Dollar Era I_icon_minitimeTue Mar 05, 2024 2:53 pm by Mission1st

» THE MUSINGS OF A MADMAN
China Embraces Gold In Advance Of Post-Dollar Era I_icon_minitimeMon Mar 04, 2024 11:40 am by Arendac

»  Minister of Transport: We do not have authority over any airport in Iraq
China Embraces Gold In Advance Of Post-Dollar Era I_icon_minitimeMon Mar 04, 2024 11:40 am by Verina

» Did Okie Die?
China Embraces Gold In Advance Of Post-Dollar Era I_icon_minitimeMon Mar 04, 2024 11:34 am by Arendac

» Hello all, I’m new
China Embraces Gold In Advance Of Post-Dollar Era I_icon_minitimeWed Jan 31, 2024 8:46 pm by Jonny_5

» The Renfrows: Prophets for Profits, Happy Anniversary!
China Embraces Gold In Advance Of Post-Dollar Era I_icon_minitimeWed Jan 31, 2024 6:46 pm by Mission1st

» What Happens when Cancer is treated with Cannabis? VIDEO
China Embraces Gold In Advance Of Post-Dollar Era I_icon_minitimeWed Jan 31, 2024 8:58 am by MadisonParrish

» An Awesome talk between Tucker and Russell Brand
China Embraces Gold In Advance Of Post-Dollar Era I_icon_minitimeWed Jan 31, 2024 12:16 am by kenlej

» Trafficking in children
China Embraces Gold In Advance Of Post-Dollar Era I_icon_minitimeMon Jan 29, 2024 7:43 pm by kenlej

» The second American Revolution has begun, God Bless Texas
China Embraces Gold In Advance Of Post-Dollar Era I_icon_minitimeMon Jan 29, 2024 6:13 pm by kenlej

» The Global Currency Reset Evolution Event Will Begin With Gold, Zimbabwe ZWR Old Bank Notes
China Embraces Gold In Advance Of Post-Dollar Era I_icon_minitimeSun Jan 28, 2024 3:28 pm by Mission1st

» Tucker talking Canada
China Embraces Gold In Advance Of Post-Dollar Era I_icon_minitimeWed Jan 24, 2024 6:50 pm by kenlej

» Almost to the end The goodguys are winning
China Embraces Gold In Advance Of Post-Dollar Era I_icon_minitimeMon Jan 22, 2024 9:03 pm by kenlej

» Dinar Daily Facebook Page
China Embraces Gold In Advance Of Post-Dollar Era I_icon_minitimeMon Jan 22, 2024 3:34 pm by Ponee

» The Fundamentals of Finance and Pimpy Live
China Embraces Gold In Advance Of Post-Dollar Era I_icon_minitimeThu Jan 18, 2024 7:17 am by Dinarhater

» Why Won't the Iraqi Dinar Scam Die?
China Embraces Gold In Advance Of Post-Dollar Era I_icon_minitimeWed Jan 17, 2024 5:19 pm by RamblerNash

China Embraces Gold In Advance Of Post-Dollar Era

2 posters

Go down

China Embraces Gold In Advance Of Post-Dollar Era Empty China Embraces Gold In Advance Of Post-Dollar Era

Post by Ponee Sun Apr 17, 2016 9:48 pm


(EXCERPT) To challenge the US dollar hegemony and increase its power in the global realm of finance, China has a potent gold strategy. Whilst the State Council is preparing itself for the inevitable decay of the current international monetary system, it has firmly embraced gold in its economy. With a staggering pace the government has developed the Chinese domestic gold market, stimulated private gold accumulation and increased its official gold reserves in order to ensure financial stability and support the internationalisation of the renminbi.

    “The outbreak of the crisis and its spillover to the entire world reflect the inherent vulnerabilities and systemic risks in the existing international monetary system…. The desirable goal of reforming the international monetary system, therefore, is to create an international reserve currency that is disconnected from individual nations and is able to remain stable in the long run…”
 
Not surprisingly, China’s strategy is everything but linear. Let us analyse the State Council’s most recent actions with respect to gold and the internationalisation of the renminbi. In addition to gold accumulation, the State Council has aimed to kick start renminbi internationalisation by having it included into the International Monetary Fund’s (IMF) basket of currencies, the Special Drawing Rights (SDR), in 2015.

For acceptance, the IMF required openness of China’s international reserves, of which the PBOC hadn’t updated its gold reserves since 2009. Here we found the PBOC stretched between opposing forces; it obviously preferred to hoard gold in concealment not to disturb financial markets, while at the same time it was requested to open its books.

In July 2015 the PBOC decided to revise its official gold reserves by 604 tonnes to 1,658 tonnes, which was probably not the whole truth but served both means, as markets barely reacted to the increment – the gold price has not increased since then – and the IMF has granted annexation of the renminbi into the SDR.
 
How much gold does the PBOC truly hold? Before we make an estimate we must first address the question, how and where does the PBOC buy gold? Some analysts assume the PBOC buys gold in the domestic market at the SGE. According to my research this is not true. My sources in the bullion industry tell me first hand that the PBOC buys gold in the international OTC market using Chinese banks as proxies. And this intelligence fits into the wider analysis, as there are many reasons why the PBOC would not buy gold through the SGE.
 
A rough estimate suggests the PBOC holds nearly 4,000 tonnes in gold reserves, more than twice the amount they officially disclose. In a quest for any clues we must visit the heart of the gold wholesale market.

Data by the London Bullion Market Association points out there have been approximately 1,700 tonnes of monetary gold exported from London between 2011 and 2015. China’s central bank is the foremost suspect for these purchases, given its size and motives, and the tonnage exported from London is consistent with other sources that state the PBOC has bought roughly 500 tonnes a years since 2009. All clues together point to the PBOC holding roughly 4,000 tonnes currently. Although this remains speculation.
 
More of China’s gold strategy was revealed by the recent launch of the Shanghai International Gold Exchange (SGEI) that offers gold trading in renminbi for clients worldwide, in an attempt by China to strengthen the internationalisation of the renminbi.

In itself the SGEI clearly underlines China’s gold ambitions16, but the punch line was added with the launch of the Silk Road Gold Fund in 201517. Led by the SGE(I), the $16 billion fund will boost the gold industry along the Silk Road and in turn “will facilitate gold purchases for the central banks of member states to increase their holdings of the precious metal”, according to the Chinese state press agency Xinhua18. Not only is China trying to persuade all mining and consumption of gold along the Silk Road economic project to be settled through the SGEI in renminbi, additionally the Chinese promote gold as an essential component of central banks’ international reserves going forward.
 
We must conclude that the State Council views gold as part of the coming international monetary system.

Why else does it quickly develop the domestic gold market to be embedded in financial markets, surreptitiously accumulate vast gold reserves and establish a framework to boost gold business on the Eurasian continent around the SGEI? In my view, China contributes significant value to its gold strategy in the shadow of the apparent failure of the current fiat monetary system. And if true, China’s central bank having nearly 4,000 tonnes of gold is well on its way to introduce the next phase.

 READ MORE here:   http://www.zerohedge.com/news/2016-04-16/china-embraces-gold-advance-post-dollar-era

*****************
Ponee
Ponee
Admin
Admin

Posts : 38267
Join date : 2011-08-09

Back to top Go down

China Embraces Gold In Advance Of Post-Dollar Era Empty Re: China Embraces Gold In Advance Of Post-Dollar Era

Post by Kevind53 Mon Apr 18, 2016 12:00 am

About what I have come to expect from Zero Hedge. BTW it appears that a number of people write for them under the nom-de-plume Tyler Durden. Not all of them are known, but a couple that are at least strongly suspected have had their securities licenses yanked for little technicalities like insider trading, and I'll bet my bottom dollar that many are promoting their own scams. Caveat Emptor.

*****************
Trust but Verify --- R Reagan Suspect

"Rejoice always, pray without ceasing, in everything give thanks; for this is the will of God in Christ Jesus for you."1 Thessalonians 5:14–18

 China Embraces Gold In Advance Of Post-Dollar Era 2805820865  China Embraces Gold In Advance Of Post-Dollar Era 2805820865  China Embraces Gold In Advance Of Post-Dollar Era 2805820865  China Embraces Gold In Advance Of Post-Dollar Era 2805820865
Kevind53
Kevind53
Super Moderator
Super Moderator

Posts : 27254
Join date : 2011-08-09
Age : 24
Location : Umm right here!

Back to top Go down

Back to top


 
Permissions in this forum:
You cannot reply to topics in this forum