Why China May Soon Reveal "Astounding" Gold Reserves

Why China may soon reveal “astounding” gold reserves

By H’enry Chia:  On Sep 14, 2022

An intriguing pattern of price moves in global gold markets has cleared the way for China to hoard an enormous amount of the precious metal, according to veteran analyst and trader, Francis Hunt.

“If you look at 30-40 years, the gold chart on the New York session rolls over like a payment curve on a mortgage, and on the Asian session it goes absolutely parabolic and we end up with the net paper gold price which is the aggregated of the two.

 “The gold is going from west to east and this is essentially a discount window in my opinion that is being held open and as a result they have a manufactured gold window – they (China) are the biggest providers and the biggest importers.

But why is China hoarding gold?

China Gold reserves to be revealed in Central Bank Digital Currency announcement that threatens U.S. currency hegemony

On State of the Markets, Hunt said he believes all will revealed upon the launch of a new Central Bank Digital Currency.

Many have long predicted the extensive research and development being conducted by China and its geopolitical allies will result in a Central Bank Digital Currency that will become a real threat to the dominance of the USD.

But could China and its allies be about to surprise the world by backing its digital currency by physical gold?

Hunt believes so, and he thinks it could happen within months amidst the chaos of the energy crisis.

“Russia and China – for credibility because this will be a new system – how will they be different? Everyone will be very jaded on Government-based monetary systems after the problem, reaction, solution. We are working our way into the final mega-problem to hit us, the northern hemisphere winter (and energy shortage).

“How do you get people to show confidence in a new system if you are the BRICs (Brazil, Russia, India, China and South Africa)? Well, you’re going to resort to something that’s timeless, that’s physical, and China’s already been stacking as America’s been holding open the discount window for the Asians to move it over.

“I would expect a major announcement of Chinese gold holdings that would astound most analysts would probably be accompanied with any Central Bank Digital Currency release and mention of gold backing.

“As the Russian ruble microcosm has already showed by utilizing oil and gold – having going from $160 back down to $60 after that blow-off event. How did Russia deal with their blow-off crisis at $160 USD ruble? Hey, we’ve got resources, we’ve got gold… Next thing you know, back down at $60.

“Both Russia and China have known they must de-dollarize for some considerable time, which is why both have been so steadily increasing their gold holdings,” said Frisby.

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