As we come to the end of the second week of trading in May, a China shocker is being hidden from the public out of fear it will create worldwide panic buying in gold.

Today King World News received an email question regarding the article below about China.  The email question ultimately has to do with China’s massive gold reserves, the People’s Bank Of China (PBOC), the Silk Road and more…


IMPORTANT…
To find out which company is
 set to become one of the
highest grade producing gold mines on the planet
CLICK HERE OR BELOW:

kwn-iii-1192016Sponsored


First here is the email from a KWN reader:

Just ran across this article in link and an a bit confused. Thought you could enlighten me as you understand all of this stuff so quickly. With RMB denominated loans being created in AIIB then swapped by PBOC with local currencies of countries along the Silk Road involved in projects, it seems on surface that RMB would be weak with excess RMB in PBOC. However with Chinese oil futures contract priced in RMB thereby simultaneously paying for its oil and other resources in RMB that would strengthen RMB and gold as the RMB can be converted into gold at SGEI.

Question – I can’t see how OBOR works without China coming clean with its true gold reserves?

Here is the article the KWN reader reader referenced:

ThiBelt and Road projects are encouraged to use local currencies in investment and finance to cut problems associated with exchange rate fluctuations, said Yi Gang, deputy governor of the People’s Bank of China (PBOC).

By using local currencies, countries along the routes can tap into domestic savings and ensure financial stability, he told People’s Daily in an interview on Thursday.

China aims to provide a platform for financial connectivity where participants can share profits and risks, Yi said.

“Although infrastructural projects along the routes tend to have a longer investment horizon, most are commercially profitable. The financial institutions operate under market rules,” the deputy governor was quoted as saying.

Yi echoed remarks made by central bank governor Zhou Xiaochuan last week in promoting usage of local currencies.

Such suggestion comes as nations along the Belt and Road are closer knitted than ever through financial cooperation. According to data by the PBOC, nine Chinese banks have set up subsidiaries in 25 countries along the routes, while 54 commercial banks from 20 countries have established theirs in China by the end of last year.

China has signed currency swap agreements with 21 countries along the Belt and Road, six of which have RQFII (RMB Qualified Foreign Institutional Investors) quota.

Direct currency trade and settlement can lower exchange rate risk and make investments more convenient, Yi said. “Financial cooperation will enable China and countries along the routes to open and integrate further in a broader scope.”
—————————————————————————————————————————————————–

King World News - China Shocker Being Hidden From The Public Out Of Fear It Will Create Worldwide Panic Buying In GoldChina’s Hidden Secret: Fear Of Worldwide Panic Buying In Gold
Stephen Leeb addressed this question directly.  Here is Leeb’s response:

The gentleman makes a good point. Please thank him for referring the piece. I suspect China will come clean on their gold reserves but that is likely a last step. I view the recent announcement on oil futures as a necessary next step to a gold-centered monetary system. Coming clean will likely come after all the rules are in place for fear of creating worldwide panic buying in gold.  Best, Steve

KWN has just released one of Bill Fleckenstein’s greatest audio interviews ever and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.

kwn-fleckenstein-mp3-5132017

***KWN has already released the fascinating audio interview with Rick Rule discussing stock picks for gold, silver, and uranium, as well as the big picture for the gold and silver markets and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.

kwn-rule-mp3-5122017

***ALSO JUST RELEASED: Rick Rule Just Shared One Of The Greatest Investment Opportunities Ever CLICK HERE.

© 2017 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.  However, linking directly to the articles is permitted and encouraged.

King World News RSS Feed

Share on FacebookTweet about this on TwitterShare on Google+Share on LinkedInEmail this to someonePrint this page