Sunday, November 26, 2017

It appears gold backed trade may be just on the horizon as the BRICS economies in discussion for a new gold system

With the Western gold markets primarily a paper derivative one, the Shanghai Gold Exchange quickly emerged as the world's largest physical gold market just months after its opening in late 2015.  And since that time they have expanded connections to both the Hong Kong and Russian gold markets.

But now it appears that China, along with the BRICS economies, are ready to take this segregated gold market even further as discussions are now taking place to formulate a new gold system that will integrate gold into bi-lateral trade contracts.

* And yes this would be a big Ding to Dr. Jim Willie's forecast years ago of the creation of a gold trade note

Brazil, Russia, India, China and South Africa (BRICS) are discussing the possibility of establishing a separate gold trading system, according to the First Deputy Chairman of Russia’s Central Bank Sergey Shvetsov. 
“The traditional (trade) system based in London and partially in Swiss cities is becoming less relevant as new trade hubs are emerging, first of all in India, China, and South Africa,” he said, adding “we are discussing the possibility of establishing a single (system of) gold trade both within BRICS and at the level of bilateral contacts.” 
BRICS countries are large economies with substantial reserves of gold and an impressive volume of production and consumption of the precious metal, said the official. According to him, the new system may serve as a basis for the further creation of new benchmarks. 
The Bank of Russia has already signed a memorandum on developing bilateral gold trade with China. The regulator plans to form a single trade system with the People’s Republic of China in 2018. - Russia Today


China has a trade surplus. What it means is the purden of sourcing gold will be on it's partners. The pressure on comex will come from the rest of the world while China sit and watch their gold revalue.

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