Asia

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.

The People’s Bank of China said Monday it raised reserves for a seventh month in June, adding 10.3 tons, following the inflow of almost 74 tons in the six months through May.

“Shanghai Gold will change the current gold market with its ‘consumed in the East but priced in the West’ arrangement. When China has the right to speak in the international gold market, the true price of gold will be revealed.” – Xu Luode, Chairman, Shanghai Gold Exchange, 15 May 2014

China extended its gold-buying spree, adding to reserves for a sixth straight month, as the protracted trade war with the U.S. hurts growth expectations and boosts demand for a portfolio diversifier.

There has been a lot of publicity about central banks having bought substantial amounts of gold in 2018, in total 651 tonnes which is the highest in 50 years. In relation to this gold story about central banks, it is not that they bought gold which is the real news. The important point is who bought the gold.