Dear Friend of GATA and Gold:
GoldCore's Jan Skoyles this week brilliantly summarized China's creation in Hong Kong and Shanghai of a comprehensive and physical system of gold trading, clearing, settlement and vaulting allowing traders and investors to bypass the derivatives-based systems in London and New York, a new system based on Asian trading hours and with its own ticker symbol for pricing: HAU. Presumably the Hong Kong-Shanghai system may give the world a chance to see what the price of gold is in a market not as susceptible to interventions by the U.S. Federal Reserve, Treasury Department, and Bank of England in support of the U.S. dollar.
Skoyles' analysis is headlined "Gold and Silver: Asia's New Clearing System Is Now Live: The Structural Story," it's 9 minutes long, and it can be viewed at YouTube here:
But even fans of the monetary metals who will welcome a challenge to the London and New York gold rackets may do well to wonder: Why wouldn't China itself have reasons to manipulate the gold market it has created, to use it to attack the currencies of its adversaries or to help place the yuan at more convenient levels of valuation? After all, China already openly rigs the yuan market every day.
In 2009 financial and geopolitical analyst Jim Rickards was allowed to remark on CNBC, "When you own gold you're fighting every central bank in the world":
https://www.gata.org/node/7835
The enemy of your enemy is indeed your friend -- sometimes, and maybe for a while. But why should any gold advocate think that the totalitarian regime in Beijing is any more trustworthy than the corrupt regimes in London and Washington?
The only advice your secretary/treasurer can offer is this: Learn all you can, acquire all the monetary metal you can, and then find a safe planet to vault it on, and when you find one, please call me.
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
CPowell@GATA.org
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