This is the most important event for the gold market in the last 50 years.
December 10 (King World News) – Alasdair Macleod: “As far as the Middle East is concerned the West is going gung ho on climate change and they are doing away with fossil fuels. So as far as all Middle Eastern oil and gas exporters are concerned they need to secure new major markets, which can only be in Asia. It was only a few weeks ago that Qatar announced a 27 year natural gas supply deal with China. And now President Xi is in China. He will be talking oil.
50 Years Ago
Saudi Arabia has also said that it intends to join BRICS, and that’s a clear sign that it is turning its back on the Western alliance and the petrodollar. And the original agreement between America and Saudi Arabia in 1973, which led to the creation of the petrodollar, that was the greatest geopolitical development of the 1970s, I think even more important as far as the dollar was concerned than the abandonment of Bretton Woods. The creation of the petrodollar is what has run the world ever since. And the importance of ending the petrodollar regime, this should not be underestimated.
50 Years Later…
And more recently the Saudis have let it be known that instead of taking dollars in settlement for their oil exports, they are prepared to accept other Asian currencies. I think they will be waiting for details of Sergey Glazyev’s new Eurasian Economic Union Trade Settlement currency, and I think they will influence its construction.
So what are the Saudis doing at the moment? They are supplying oil to China. And I believe that they are taking Chinese yuan as payment. They will probably turn that into gold while they wait for this new Eurasian Economic Trade Settlement currency. But if they turn the yuan into gold it would be entirely consistent with the temporary arrangement ahead of Glazyev’s new currency becoming available. And I don’t think there is a sufficient amount of physical in the gold market to cover the scale of Saudis oil exports to China, India and elsewhere in Asia, so this new currency will be needed.
So all of this adds up to Saudi Arabia and others essentially selling oil for gold instead of oil for dollars. And the new trade currency will almost certainly be gold-based. Note that Glazyev, who is behind this new trade settlement currency, is also behind the proposed Moscow Gold Exchange. If that happens I think the dollar is toast. And if the dollar is toast we can only guess what that does to the gold…to continue listening to this powerful audio interview with Alasdair Macleod where he discusses what this remarkable development will mean for gold and silver as well as the short squeeze we are seeing in the market and what is ahead in 2023 CLICK HERE OR ON THE IMAGE BELOW.
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