Asia

Global bullion holdings continued to rise in the third quarter of this year, with net purchases up 12 percent compared to last year, according to World Gold Council data.

In a world that cannot survive without incessant deficit spending, money printing and negative interest rates, there is clearly something very rotten.

China has added more than 100 tons of gold to its reserves since it resumed buying in December, reinforcing its standing as one of the major official accumulators as central banks stock up on the precious metal.

China’s net monthly gold imports via Hong Kong in August surged nearly 61%, after falling to their lowest in more than eight years in July, the Hong Kong Census and Statistics Department data showed on Thursday.

China has added almost 100 tons of gold to its reserves since it resumed buying in December, with the consistent run of accumulation coming amid a rally in prices and the drag of the trade war with Washington.

This year is highly likely to be a year of changes for the investment gold market in Russia: the Ministry of Finance will assess the feasibility of VAT exemption on investment gold, the State Duma will consider a bill to allow citizens to purchase precious metals in individual investment accounts, and the Central Bank will make changes to its pricing policy when conducting its market operations.

This third leg up should bring a virtually continuous rise to about $ 19.5 in October. After a quick consolidation to $ 17, silver will resume its rise to its first goal, which is $ 21.

There’s a powerful constant amid the to-and-fro of the U.S.-China trade war as currency policy gets dragged into the standoff between the world’s two top economies: Beijing wants more gold in its reserves.

Confidence and euphoria will turn to fear and despair. Once the market realises that this time central banks have no weapons left in their armoury and that money printing or lower rates have no effect, there will be real panic.

Silver had risen to $ 50 in 1980 and I am expecting an identical increase towards $ 500 in the next years, in particular because of the RESET related to the Monetary Reform.