- Bloomberg Intelligence suggest gold-backed yuan see gold at $64,000 per ounce
- “Chinese gold standard would need a rate 50 times bullion’s price”
- As China-U.S. relations deteriorate, gold-backed yuan possible
- Dollar and financial and monetary dominance of U.S. at risk
- U.S. and China war of words continues to escalate
- China rejects U.S. hegemony in Southeast Asia
- Currency war to escalate
If China were to partially back its yuan with gold it would require a gold price of $64,000 per ounce, 50 times gold bullion’s price today, according to a recent article from respected Bloomberg Intelligence.
It seems like an outlandish forecast. However, as tensions between the U.S. and China continue to escalate such a scenario is not actually as implausible as it may first appear.
If China were to back its yuan with gold it would require a price of $64,000 per ounce according to a recent report from Bloomberg.
>> Read More
Citing former US Federal Reserve Chair Alan Greenspan, Chinese economic observer Jin Zihou suggested that the Chinese renminbi would deal a lethal blow to today’s financial system if Beijing converted its $4 trillion assets into gold.
Since the US dollar’s power is gradually fading, China, the US biggest creditor, may potentially destroy the US dollar, Jin emphasized.
Still the US dollar remains the “biggest player,” accounting for 60 percent of global reserves. However, many countries are seeking ways to limit the power of the US dollar and become less dependent on it.
According to Jin Zihou, the only way for Beijing to end the US dollar’s reign is to accumulate a significant amount of gold, namely 30,000 tons. In this case, China will be able to challenge America’s longstanding dominant position in the global trade and financial markets.
Remarkably, Alasdair Macleod, a researcher and former Executive Director at an offshore bank in Guernsey and Jersey, pointed out that between 1983 and 2003 China could have secretly accumulated almost 20,000 tons of gold.
>> Read More
In Mumbai Customs lingo, ‘Dhanalakshmi’ or ‘Kuber’ aren’t gods their officers propitiate or horses they bet on at the city’s famous Mahalaxmi racecourse. ‘Dhanalakshmi’ is the code for the Emirates flight EK500 from Dubai to Mumbai while ‘Kuber’ refers to Air India’s AI 984 which flies the same route. Officials say these are the flights used most often by gold smugglers.
According to Customs officials, ‘Dhanalakshmi’ alone accounted for 72kg of seizures in 2014-15 — almost 8 per cent of the 943kg seized at Mumbai’s Chhatrapati Shivaji International Airport, a record for the last three years and a 173% hike from the previous year.
But countrywide figures show that Mumbai is just one of the many landing grounds for these smugglers. Officials and industry insiders attribute this spike to a “high” import duty of 10 per cent from 2013, a booming demand pegged by the World Gold Council at around 840 tonnes in 2014 – 191.7 tonnes in the first quarter of fiscal 2015 alone, up 15 per cent from the same period last year — and a low prosecution rate of those caught smuggling gold.
This spurt since 2012-13 is most visible in seizure figures over the last three years at India’s two busiest international airports handling roughly 30,000 international passengers each every day — 64 kg to 943 kg in Mumbai and 6 kg to 574.81 kg in Delhi (see bar graph).
>> Read More
Above is Daily Chart of GOLD SPOT
All Eyes on $ 1177 level.
Break with volumes and closes below :Watch PANIC upto 1162————————-1157 level !
1205 to 1210 area :Hurdle
Will Update More to our Subscribers ,Updated at 6:28/23rd April/Baroda
Above is 15 Minute Chart of GOLD SPOT
After Job Data on Friday & Weakness in US Dollar Index………………….Gold on Fire
Now at $1218
We see Hurdle & Targets at $ 1225———————-1235 level.
101% Will Update More to our MCX Subscribers
Updated at 6:18/06th April/Baroda
There is only one way to value gold, and that is to quantify the expansion of the fiat currency in which it is priced.
That is the sole purpose of the Fiat Money Quantity (FMQ), which since I last wrote about it five months ago has increased by $375bn to $13.7 trillion. This is despite the end of quantitative easing, which had been tapered down before being abandoned altogether. The long-term chart of FMQ is shown below.
FMQ is the total instant-access cash and deposits in the commercial banks plus their reserves at the Fed and the temporary means by which those reserves are changed. Its purpose is to quantify the difference between sound money and fiat currency by including the steps by which gold has been progressively absorbed into the banking system from private ownership and into government vaults via the commercial banks and the Fed. A fuller description can be found here. >> Read More
Two months ago, when looking at the most recent physical gold withdrawal numbers reported by the Fed, we observed something peculiar: between the publicly reported surprise redemption by the Netherlands (122 tons) and the just as surprise redemption by the Bundesbank (85 tons), at least 207 tons of gold should have vacated the NY Fed’s gold vault. Instead, the Fed reported that in all of 2014 “only” 177 tons of gold were shipped out of the massive gold vault located 90 feet below 33 Liberty Street. Somehow the delta between what we “shipped” and what was “received” in the past year was a whopping 30 tons, or about 15% of the total – a gap that is big enough to make even China’s outright fraudulent trade numbers seems sterling by comparison.
This prompted us to ask:
“what happened? Did an intern input the Fed’s gold redemptions figures for December, supposedly a different intern than the one who works at the IMF and who caused a stir earlier this week when the IMF, allegedly erroneously, reported that the Dutch – after secretly repatriating 122 tons of gold – had also bought 10 tons of gold in the open market for the first time in nearly a decade.
Or perhaps some “other” bank, central or commercial, decided to offset the redemptions by the Netherlands and Germany, and inexplicably added 30 tons of gold in December? The question then becomes: “who” deposited said gold, especially when one considers that even the adjoining JPM vault which is allegedly connected to the NY Fed by a tunnel, only contains some 740K ounces of gold, or about 23 tonnes.
Or is it simply that when it comes to accurately reporting the flows of physical gold, classical math is incapable of keeping track of the New Normal gold moves, and the Fed has decided that even when dealing with physical gold there is a “settlement” period?
>> Read More
Above is Daily CHART of GOLD SPOT
Mind Blowing Rally ,Tons of Money Minted by our MCX Subscribers
Now Gold Spot @ 1205
Crucial Support at $ 1200————————————-1195 level.
Yes ,Break with volumes and sustains below 1195 will create more panic.
Hurdles at $$ 1223—-1228 level.
Above is Daily Chart of GOLD SPOT
Yes ,Our Major Support at $ 1141……..Not Broken ,Our Targets were :1165——1170
Next Target were :1187———————–1192 level
(Just see it kissed High of $ 1188 level )
All Eyes on $ 1192 level.Crossover and close above this level create more Firework
We see Rally upto 1203—-1208 level
101% More Details to our MCX Subscribers ,Updated at 6:20/23rd March/Baroda