The piece below was published just one year ago, but developments suggest that China is now in a position to takeover the Fed, as most of the Fed’s Gold has made an exit, stage left… and headed, via Swiss refineries to be re-cast into .9999 1Kg bars to the Shanghai Commodities Exchange.
Almost 4,000 metric tonnes in a little less than two years…
Information recently released suggests that over the last ten years the Chinese have imported close to 8,000 tonnes of Gold and have been the world’s biggest producer with circa 300-400 million ounces in the last five years.
In the background, The politics at the IMF, mean that the Chinese who have $4trillion in reserves are in a position to assume the mantle that the Fed has hitherto carried.
We shall see.
In the New Year, the COMEX will possibly default as the longs overwhelm the shorts, and the position may be as little as four weeks away.