Away From Dollar: Russia, China to Create Entirely Different Gold Market

Sometime in the short-term of mid-term future, China and Russia will come out and say “We have all (or most) of the world’s gold. We will now make the rules.”

This also could be the “event” that a lot of experts are talking about regarding late September and early October crisis predictions. Former Reagan advisor, Martin Armstrong predicts October 1st, 2015 (2015.75) as a turning point in world history, for example.

Ironically, this article comes from a state-run source, which could be the Kremlin’s own way of dropping a hint.

 

While key Western banks are artificially restraining gold prices to breathe life into the diluted and devalued dollar system, Russia, China and other emerging economies are involved in “the genial move” to establish an entirely different gold market, F. William Engdahl underscores.

Key central banks, particularly the Federal Reserve and Bank of England, and Western market players have long been accused of clandestine gold price manipulating aimed at preserving the dollar’s role “as world reserve currency primus,” American-German economic researcher and historian F. William Engdahl writes.

“The COMEX gold futures market in New York and the Over-the-Counter (OTC) trades cleared through the London Bullion Market Association do set prices which are followed most widely in the world. They are also markets dominated by a handful of huge players, the six London Bullion Market Association gold clearing banks — the corrupt JP MorganChase bank; the scandal-ridden UBS bank of Zurich; The Bank of Nova Scotia — ScotiaMocatta, the world’s oldest bullion bank which began as banker to the British East India Company, the group that ran the China Opium Wars; the scandal-ridden Deutsche Bank; the scandal-ridden Barclays Bank of London; HSBC of London, the house bank of the Mexican drug cartels; and the scandal and fraud-ridden Societe Generale of Paris,” Engdahl narrated.

Furthermore, Western banks are issuing numerous paper “gold-futures” and other speculative contracts which are in fact disconnected from real physical gold. Continue reading

China’s Secret Gold Hoarding Strategy

China’s leaders have a clever strategy, and Western financial powers may someday wake up in shock when they realize what has occurred.

 

China, Russia Are Quietly Emerging as World’s Gold Buyers

Chinese officials aim to ultimately to challenge the America’s standing as the world’s superpower. That’s why they’re forming a strategic alliance with Russia, an adversary of the U.S. That’s why both the Russian and Chinese central banks have quietly emerged as the world’s largest gold buyers.

In July, the People’s Bank of China reported that it has added more than 600 tons of gold bullion to its stockpiles since 2009, taking the total to 1,658 tons. That represents a 60% jump in gold assets in just six years.

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Germans are buying gold at a frantic pace.

It may be a sign they are worried about the future. People tend to buy gold when they fear economic disaster or a spike in prices.

The World Gold Council report released on Thursday said demand for total gold bar and coins spiked by 20% in Germany during the first quarter from the year before.

It’s unusual for gold to be a hot commodity in an economy as strong Germany’s is right now. And growth in Europe has regained momentum in recent months, outpacing even the sluggish pace experienced in the U.S. Continue reading

Repatriation of Gold from Fed Suggests Historic Vote of No Confidence

Since 2012, there’s been an unprecedented call from foreign nations to repatriate their gold from Federal Reserve vaults in the U.S. This is an incredible development given many countries’ 71-year reliance on the Fed as a custodian for their bullion. Over the last few years, countries including, but not limited to, Germany, the Netherlands, France, Belgium, Austria, Poland, Ecuador, Finland, Switzerland, Venezuela, and Romania have either formally requested repatriation of their gold or are in discussions with the Fed about it. Some of these nations, mind you, have held more than 50% of their entire reserves of bullion in the U.S. since 1944, when the Dollar became the world’s reserve currency.

Something huge must have happened in the last few years to prompt such action. That something may be a break in foreign gold holders’ trust in the Fed as a custodian of their precious metals. Continue reading

Opinion: China is about to come clean about how much gold it really owns

 

To join elite currency club, Beijing may agree to more transparency of its holdings

China may be ready to tone down its secrecy over state gold holdings — thanks to complicated maneuvering on the renminbi potentially joining the International Monetary Fund’s monetary reserve denominator, the special drawing right, later this year.

As part of diversification of reserve holdings, over the past five years China is widely believed to have amassed official gold reserves well above its officially reported total of 1,054 tons, a figure that Beijing has maintained unchanged since 2009 in data reported to the IMF. Gold mines in China — the world’s biggest bullion producer for the past eight years, with 2014 output of 452 tons — have been quietly selling some of their output to the state, possibly several hundred tons in some recent years.

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China wants to overtake US in gold reserves: Greenspan

Alan Greenspan, former chairman of the US Federal Reserve, said China is increasing its gold reserves in an attempt to surpass the United States as the holder of the most monetary gold in the world. However, the US economist also said the country will not be able to maintain its rapid economic development due to a lack of innovation. Continue reading

Wall Street concerned over China’s gold hoarding

Leung Hai-ming told the portal that China’s central bank took advantage of the US Federal Reserve’s quantitative easing program in 2013, when the price of gold fell by 27%. The bank bought in over 1,000 tonnes of gold, representing almost one third of the world’s 3,756 tonnes last year.

There is reportedly less than 180,000 tonnes of gold reserves left, and only 20% of that remaining gold is tradable. This means that the People’s Bank of China will likely keep hold of the gold, limiting the gold trading volume — a concern for both the US government and Wall Street traders. Continue reading

Preparing For A Reset Of The World’s Reserve Currency

The eventual death of the U.S. Dollar is a given and not up for debate. This will, however,  sound alien and come as a shock to most living in the west who continue to go on living while turning a blind eye to current events.

Willem Middelkoop and Terence van der Hout of the Netherlands-based Commodity Discovery Fund believe that when the world’s reserve currency is reset away from the U.S. dollar in the next decade, gold prices will rise and mining equities will follow. Van der Hout and Middelkoop tell The Gold Report that by focusing on producers, near-producers ,and turnaround stories, they plan to capitalize on the opportunities in North America, Africa and beyond.

The Gold Report: Willem, your first book predicted the collapse of the global financial system a year before the 2008 fall of Lehman Bros. In your new book “The Big Reset: War on Gold and the Financial Endgame,” you’re predicting the demise of the dollar as the reserve currency by 2020. You said it can occur as a carefully planned event or as the result of a crisis. What would these two scenarios look like?

Willem Middelkoop: Authorities always prefer to act within a well-planned scenario. The U.S. and the International Monetary Fund (IMF) understand that the U.S. dollar has to be replaced one day. It could be 2020. It could be 2018. It could be 2023. It has to be replaced by another anchor to support the worldwide monetary system. Continue reading

Gold Investors Exit Amid Price Collapse

The biggest story on global financial markets today is the collapse of gold and silver prices. Gold is down more than $90 an ounce since Friday – a fall of about 7 percent. The price drop comes on top of last week’s 4.7 percent  tumble. Silver prices tumbled 8 percent, or $24 an ounce.

Copper is also falling. The reasons for the plunge are linked to the recent rise in the stock market, the slow, steady improvement of the US economy and the recent strength of the dollar. Crude oil futures have tumbled on global markets, down to less than $89 for West Texas crude, the lowest price since December, 2012. Continue reading