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This is Why Gold is Rallying

VBL's Photo
by VBL
Friday, Oct 20, 2023 - 12:16

BREAKING: This is Why Gold is Rallying

China May Throw Gold Out on the Yield Curve First.

Authored by GoldFix ZH Edit

Good morning. There’s a lot going on and gold is finally reacting to it.

You would be right to ask “Why now?” and “What has changed?” Everything happening is bad, but not new. What is different? Here is precisely what has changed.

The world is waking up to Gold as a formal replacement/substitution of US Treasuries as the world’s Global reserve asset.

On the surface of it, a very early buy-season is kicking in. But here is the catalyst. This is what is different. This is what noone is talking about, but everyone is paying attention to:

A story by Reuters implying that China may issue Gold Bonds is starting a realization that Gold may finally be formally launched as a reserve asset. This is an attack on the US Treasury dominance as Global reserve asset.

Here is the phrase that Reuters story posted just hours ago that matters:

In a war with the U.S. over Taiwan, China would need to create a global network of companies under U.S. sanctions, seize American assets within its borders, and issue gold-denominated bonds, according to Chinese government-affiliated researchers.

This explains why Gold is rallying, Why Treasuries are selling off, and why China continues to dump them along with the rest of the world at a more accelerated pace. This is precisely why.

GoldFix predicted this in January right on ZeroHedge. We  actually thought the US would do it in reaction to China monetizing gold, not China first. But this shows China is serious and not waiting anymore.This is also how they can internationalize the Yuan while keeping many of their capital controls in place.


Contributor posts published on Zero Hedge do not necessarily represent the views and opinions of Zero Hedge, and are not selected, edited or screened by Zero Hedge editors.

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