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May
12
2023

China Just Made Gold Money Again
Vince Lanci

Drainage: China's New Gold Wallet Will Suck the West Dry.

This is ultimately a tool for confiscation by the CCP from the Chinese people. After their citizens buy Gold  and pull it into China.. they won't be able to get it. But the Chinese people now have a choice. They can own paper Yuan or Yuan with a "promise" of being able to have gold buying power. The choice is easy. Citizens will pull in foreign gold

There was significant news out of China Monday, as at 3 AM eastern time, they effectively made gold money again. Not just as an SOV, but as a Medium of Exchange MOE linking state-run savings accounts with Gold bullion accounts

The commercial banks in China created the ability for Renminbi savings accounts to be connected to gold accounts, so that Chinese citizens can now buy gold directly out of those  savings accounts. All of this is similar to linking  savings to checking at a bank. 

By China enabling its citizens to buy Gold with a click using their already connected  savings accounts, you are going to see an even faster draw down of western gold as it gets bought in the east.

China is effectively setting up a one way straw to drink the West's Bullion wealth. Because as we know, that gold will not be permitted to check out of China once it checks into it. They are going to drink our milkshake. The question is, does JPMorgan help them insert the straw to get access to China accounts or not?

China has long been encouraging its population to purchase gold, and the new policy has just made it even easier to do so. This is also happening at the same time that JP Morgan's Jamie Dimon is on his way to China for the first time in 4 years, which Vince suggests, while not a gold-trip perse,  is hardly a coincidence.

He talks about the potential reasons Jamie is visiting China, and the potential links they might be aiming to develop regarding business in the gold and other  markets. Vince also talks about the declining silver inventories on the COMEX, and whether there really is a significant amount of silver available to be delivered. So to stay up to date on the latest developments in the precious metals markets.

Gold, China, CBDCs and JPMorgan's possible role in all this explained...

This is obviously  a tool for confiscation by the State from the Chinese people. After they buy it and pull it into china.. they cant get it. For the Chinese people they have a choice, owning worthless yuan, or owning worthless yuan with a "promise" of being able to have gold buying power. The choice is easy. Citizens will pull in foreign gold

 

 

Vincent Lanci embarked on his career in Commodity trading 20 years ago as a marketmaker on the floor of the Nymex and Comex and Nybot Exchanges. In 2004 he served as GP for for CiS Energy LLC, a commodity derivatives fund specializing in Energy Options.

After a successful run there, he formed Echobay Partners in 2007, a venture capital group specializing in Exchange Vertical investments, FMX|Connect and Cameron Hanover among them. He currently oversees company strategy in trading as well as investing and is also actively managing a portfolio in precious metals for echobay.

 

 

https://www.arcadiaeconomics