China NEEDS $13,000 GOLD PRICE To Implement Oil-For-Gold Contract
SilverDoctors.com
September 28, 2017
If China launches the highly anticipated oil-for-gold contract by the end of this year, Jim Rickards $10,000 forecast for gold may be off by some 30%. Here’s how China could launch the new oil contract in just a few short months from now…
by Brian Maher via Daily Reckoning
This Could Send Gold Much Higher Than $10,000
Jim Rickards is on record forecasting $10,000 gold.
But is China about to provide the catalyst to send gold even higher? And by how much?
Today, we fare forth in the spirit of speculation… follow facts down strange roads… and arrive at a destination stranger still…
China — the world’s largest oil importer — struck lightning through international markets recently.
According to the Nikkei Asian Review, China has plans to buy imported oil with yuan instead of dollars.
Exporters could then exchange that yuan for gold on the Shanghai Gold Exchange.
Not only would the plan bypass the dollar entirely… it would restore gold’s role in international commerce for the first time since 1971, when Nixon hammered the last nail through Bretton Woods.
If the rumors hold true, China’s plan could enter effect by the end of this year.
Billionaire business magnate and sound money advocate Hugo Salinas Price ran China’s plan through his calculator.
It turned up a basic math problem that spells drastically higher gold prices — if the plan is to work.
Details to follow.
But first some background on oil and gold… a brief detour down Bretton Woods Lane…
Price:
By 1970, it was evident to those running the U.S. that it would very soon be necessary to import large quantities of oil from Saudi Arabia. Under the Bretton Woods Agreements of 1945, the immense quantities of dollars that would shortly flow to Saudi Arabia in payment of their oil would be claims upon U.S. gold, at the time quoted at $35 an ounce. Those claims would surely deplete the remaining gold held by the U.S. Treasury in short order.
Washington found itself on the sharp hooks of a dilemma…
Dramatically raise the price of gold to limit redemptions — and devalue the dollar in the process — or repudiate its commitments under Bretton Woods.
The Rest…HERE
