China to Start Yuan-Based Gold Price Fix in April: Game Changer? WOWOWOWOW!!!

Related: COMEX Just Received A Physical Gold Bailout From The Feds – Fed Bailed Out The Comex With hypothecated Gold, June 10, 2015

 – Gold At $64,000 – Bloomberg’s ‘China Gold Price’, June 5, 2015

My thanks to a reader, E. is the possible game changer I have been looking for, and the change will come at the beginning of the astrological new year!

E shares – to my delight:

In reference to the ‘Oregon Stand for the Establishment of Lawful Authority’, I suspect the Chinese gold/yuan revaluation has put the skids under the “illuminati”.
If, gold revalues significantly, USA and quite possibly UK will be exposed as financially embarrassed. or quite possibly bankrupt.

A bankruptcy that will have been the sole fault of the financial thieves in the fake “governments” and Wall Street.

A bankruptcy that may produce a justifiable social unrest, aimed particularly at the engineers of the insolvency.

The so-called “illuminati” would have cause to be scared for their existence.

I have read reports of their intentions to dispossess the Indigenous Maoris, in an attempt to secure their own and, their families futures, in New Zealand.

So, a$hkeNAZI land theft is alive and well globally !

The other financial point about Oregon is the gold and minerals that the a$hkeNAZIs clearly plan to unlawfully steal.

If, gold revalues to $64,000 per oz, Oregon will be “ripe for the picking” and, the a$hkeNAZIs patently know that.

My response to E:

I remember reading that the US will be invited to ‘play’, and if they cannot pay in gold, they will still be able to ‘play’, but the cost will be increased significantly. As the pressure builds, Americans will become restive and begin to ask serious questions, the Fed will be returned within the Treasury, and the corporate government under which we are being forced to live will be realigned with the Constitution. I pray for this or some other similar outcome, so that we are able to make the transition without war! ~J

 * * *

China has been quietly accumulating a significant amount of gold bullion in recent years. They are now the top producer and top consumer of gold in the world. They are believed to keep all of their domestic production, plus import significant amounts from other nations. In addition, they have been buying up gold mines around the globe at steep discounts and bringing home gold they had stored in London, New York and Switzerland.

After accumulating all of this gold, along with their close ally Russia, many believe they will eventually break the metal free from the price manipulation undertaken by the banks/governments in the United States and United Kingdom. Once price discovery moves from West to East, they will allow the price to float to free-market levels and the value of all the gold they have been accumulating will skyrocket.

Removing the gold price suppression will be accompanied by wholesale dumping of U.S. treasury bonds and test the world’s faith in the US dollar debt-based fiat currency system. This will give China, Russia and others a greater influence in world financial markets and better stability in their currencies. It may give them a considerable strategic advantage over the United States, a nation that many believe no longer has the gold that they claim. Indeed, with a lack of a comprehensive audit and unwillingness of officials to allow one, many believe the gold is no longer in Fort Knox.

Now we move to the really interesting part of this story. Not only has China been accumulating huge amounts of gold (on and off record), but they also launched their own international gold trading platform on the SGE. It has become the largest physical gold exchange in the world, with an estimated 52 times more physical gold withdrawals versus the predominantly paper exchange of the COMEX.

Fast forward to the first week of 2016 and China is warning foreign banks that they must participate in Yuan-based gold price fixing or lose their Chinese gold import rights. This first-ever Chinese benchmark is set to launch in April of this year and could be a game-changer for gold prices moving forward.

Reuters reported today that:

China has warned foreign banks it could curb their operations in the world’s biggest bullion market if they refuse to participate in the planned launch of a yuan-denominated benchmark price for the metal, sources said.

The world’s top producer and consumer of gold has been pushing to be a price-setter for bullion as part of a broader drive to boost its influence on global markets.

Derived from a contract to be traded on the state-run Shanghai Gold Exchange, the Chinese benchmark is set to launch in April, potentially denting the relevance of the current global standard, the U.S. dollar-denominated London price.

In a trial run for the fix in April 2015, some foreign banks participated along with many major Chinese banks. Traders at those banks said earlier that while they were interested in the benchmarking process, their legal and compliance teams may be reluctant.

Perhaps a little sensationalized, but Jim Willie recently commented:

The Gold market cannot be fixed by paper gold on a repeated basis, surely not in perpuity. When the Shanghai shock comes, all the Paper Gold structures will fall, all the FOREX derivatives will collapse, all the control rooms will go into panic mode.

The Shanghai shock is not likely to materialize all at once and cause an immediate collapse of the dollar, the COMEX or our fiat monetary system. However, it is another nail in the proverbial coffin and significantly increases the odds of more honest price discovery in precious metals as it moves from West to East.

The red line in the chart below shows Asian gold reserves as a percentage of total gold reserves. The percentage has been rising steadily for decades, but the pace of the increase has picked up significantly since the 2008/09 financial crisis.


If you believe that the gold price has been suppressed in order to maintain faith in fiat money and allow governments to continue deficit spending to secure their power, it is logical to conclude that gold prices may rise sharply as the disconnect between paper and physical pricing intensifies. And it would make sense for China, Russia and other BRICS nations to push for such a transition, as it would diminish the dominance of the United States in global trade and finance, leveling the playing field.

gold west to east

In any event, it will be an interesting development to watch during 2016. I believe it could be another catalyst in a long list that could cause a spike in gold and silver prices.

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About the Author:

Jason Hamlin is the founder of Gold Stock Bull and has been investing in precious metals for over 20 years. Jason spent nearly a decade in analytics for the world’s largest market research firm, before finding success investing full time. He launched Gold Stock Bull in 2005 and turned his focus from helping fortune 500 companies to helping individual investors that were struggling to achieve strong gains in the stock market.
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3 Responses to China to Start Yuan-Based Gold Price Fix in April: Game Changer? WOWOWOWOW!!!

  1. enki says:

    J quote……….

    “I remember reading that the US will be invited to ‘play’, and if they cannot pay in gold, they will still be able to ‘play’ but the cost will be increased significantly”.
    You also commented at the top of the latest ‘Oregon’ update…there is no gold.

    According to an Abel Danger article written recorded 2010/2011, you are correct…THERE is NO GOLD.

    There have been various suggested numbers, bandied around…
    1) Gold has been oversold to the tune of $4.5 trillion.
    2) Gold paper contracts oversold at a ratio of 100 to 1…. i.e….. 1 oz of physical gold has been sold 100 times over in the paper market.
    So for each 1 oz of gold, there are one hundred “buyers” claiming it as their own !
    3) Gold paper contracts have been oversold at a ratio of 300 to 1.

    Stating the obvious, selling 1 oz of gold to 300 people will net the “seller” a considerable sum around $260,000 depending on the cost per oz.
    That is $260,000 STOLEN/UNLAWFULLY ACQUIRED and, I am talking about just …..1 oz !

    The ‘Masters of Finance’ have all the hallmarks of criminal insanity, seemingly masked by an insouciant indifference.
    THEY….”APPEAR”….to have …..STOLEN ….ALL the GOLD.

    The gold manipulation situation was catastrophic in 2011.
    The Abel Danger article is available in audio.
    It is mind bogglingly appalling.

    The “white knights” in the Gold Market are GATA….’Gold Anti-Trust Action Committee’.
    GATA has worked tirelessly, for years, to bring the….. gold-manipulation-cess-pit… the attention of the “authorities” and, the public.
    The CFTC ‘Commodities Futures Trading Commission’ an oversight “organisation” appear to have turned a blind eye.
    The link above features the GATA founder Bill Murphy talking about the gold “situation”.

    The traders/players in this game have been said to consider their own perfidy, amusing and, the “marks”/victims not worthy of consideration.

    • Jean says:

      Thanks, Enki, I will publish this! I have known this stuff for perhaps too long. To go back and research it again is too much for me anymore, so I am very, very grateful to you 🙂 Hugs, ~Jean

  2. bewareofserco says:

    ”The so-called “illuminati” would have cause to be scared for their existence.”

    All of the world’s problems are a consequence of humanity’s tolerance of SECRECY! Secret societies, secret meetings, rules and regulations that are SO complex that they are effectively ‘secrets’ known only to the compartmentalised initiates of those administrating these systems of oppression and exploitation. It is going to take far more than just a ‘gold-backed’ medium of exchange to rectify this!

    The so-called “illuminati” would never have existed without mass acceptance of ‘secrecy’. It is going to take a very long time IMO, before people realize that they have to deal with the root-cause of the planetary problems instead of just fiddling about with one of the MANY symptoms (a totally corrupt financial system in this case).

    Secret societies are a cover for ALL kinds of evil; the fermenting of wars, pedophilia, human trafficking, drug deals, arms deals, geo-engineering, socioeconomic engineering etc, the list is endless!

    Those who currently thrive in their ‘secret’ societies will just find other ways of maintaining their parasitic, multi-billion dollar lifestyles – until humanity reaches a point in its evolution where secrecy is rightly OUTLAWED and PUNISHED appropriately.

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