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A Sign of Things to Come: China Increases "Official" Gold Reserves to 1,853 Metric Tonnes - Nathan McDonald (11/01/2019)

A Sign of Things to Come: China Increases "Official" Gold Reserves to 1,853 Metric Tonnes - Nathan McDonald (11/01/2019)
By Nathan McDonald 10 months ago 5899 Views 3 comments

Jan 11, 2019


While Western governments continue to ravage each other viciously, seemingly unable to come to terms on even the simplest of agendas, the East, led predominately by the financial juggernaut that is China, continues to chug along, slowly but surely carrying through on their long term plans.

While we look inward and fight among one another, becoming increasingly polarized and isolated into our various political "camps", ceasing any form of communication with each other, our economic rivals are racing past us, forming partnerships and making plans.

Russia and China are two such countries that I have often talked about in past articles, highlighting how the West has forced these two countries into a partnership that threatens to overtake the West as the economic powerhouse of the world.

While our financial "gurus" continue to shuffle pieces of paper back and forth between each other, trading digital numbers in ever increasingly quantities, as if they had any real, true intrinsic value.

Russia and China are happily making moves around the world, acquiring physical, tangible assets that will play key roles in the coming economic conflict that the world will inevitably face at some point in our not too distant future.

Although their demand for oil, rare earths and various other forms of assets is seemingly insatiable, there is one asset class above all others that I am particularly interested in, precious metals.

Both countries have made it blatantly obvious that they are not happy with the current "status quo" and would love to see an eventual change. That change being a toppling of the US Dollar as the reserve currency of the world.

This has led to a rapid accumulation in precious metals by Russia, who have forecast their purchases on an almost monthly basis.

Meanwhile, China, who has remained tight lipped about their gold purchases since 2016 has once again made another power play, announcing an increase in "official" gold holdings, a rare occurrence for them.

Chinese reserves now stand at a staggering 59.26 million ounces, or 1,853 Metric Tonnes, but why now, why after two years of remaining silent, and then six years before that, have they now decided to let the world know that they are continuing to diversify and move into precious metals?

Simply put, it was a warning.

As the trade wars between the United States and China rage on, the latter is simply flexing their muscles and letting the former know that their long term intentions remain the same.

They plan on overtaking the US Dollar, and mounting the Yuan proudly as the reserve currency of the world, with gold playing a crucial role in that scenario.

Recently, the Governor of the Bank of England, Mark Carney, who is closely connected with some of the most influential bankers in the world had a similar assessment.

Reuters reports;

Carney said China’s yuan could potentially become a future global reserve currency alongside the U.S. dollar, though this was likely to lag behind the increase in the size of China’s economy relative to that of the United States.

“The U.S. economy overtook Britain’s in the second half of the 19th century, but it took until the 1920s before it became a dominant currency in international trade,”

As he states, none of this is going to happen overnight, as no one, not even those who plan to take the throne want to completely over tip the "apple cart", there is simply too much on the line and too much to lose.

Still, the writing is on the wall and this recent announcement is just one more piece of the puzzle.

The trade wars will rage on for years to come, as both sides continue to make moves and jostle for position, with one side hoping to remain in power and the other to gain the upper hand.

Regardless of the outcome, there is one solid and clear winner in this scenario of countless loser, gold and by extension, precious metals as a whole. Keep stacking, keep preparing.



Nathan McDonald is a libertarian, entrepreneur and precious metals enthusiast. He has always taken a keen interest in free markets and economics since an early age, which naturally led him to become a true believer in precious metals and all that they stand for.

Nathan served eight years in the Royal Canadian Navy as an electronics technician, seeing the true state of the world, before starting his first successful business. He has since gone on to create a number of businesses, all of which are still in operation and growing.

In addition to this, Nathan runs a network of successful precious metals blogs, and a growing newsletter that has attracted readers from all around the world.

He is a regular and highlighted writer for the highly respected Sprott Money Blog, which covers world events, geopolitics and of course precious metals.


The views and opinions expressed in this material are those of the author as of the publication date, are subject to change and may not necessarily reflect the opinions of Sprott Money Ltd. Sprott Money does not guarantee the accuracy, completeness, timeliness and reliability of the information or any results from its use.You may copy, link to or quote from the above for your use only, provided that proper attribution to the source and author is given and you do not modify the content. Click Here to read our Article Syndication Policy.

Chris Mack 10 months ago at 3:58 PM
China may have 20,000 to 30,000 tons of gold right now. They have been mis-representing how much gold they have. They have benefited from the Fed's manipulation of the POG thru its stooges, the banksters in order to prop up the US dollar. Is the US's 8100 tons there, or is it leased, rented or whatever? China may soon be able to back its currency with gold. When the Dollar loses it world currency status, the POG will fly as the west frys.
oleg ivan 9 months ago at 3:56 PM
China has all the technology second-hand. China, I think, will not be able to overtake the United States and other developed countries in the field of science and technology because of their education system, mentality, culture. The yuan can not be a world currency, as only technology allows us to have advanced industry.
oleg ivan 9 months ago at 4:02 PM
Russia in general has lost all technologies of the times of the USSR and does not have new ones. The country cannot even produce drilling equipment for its oil fields. The population is dying out, getting older and mass (370 thousand in 2017) will emigrate to the US and the EU. The impoverishment of the people and the growth of internal discontent according to analysts will lead in the coming years to chaos, internal conflicts and the collapse of the country apart.

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