Russia & China Setting The Stage for Gold to Move Higher with Physical Gold Trade
THEDAILYCOIN.ORG
DECEMBER 4, 2017
This is one of the pieces of the monetary puzzle we have been awaiting.
Russia and China, over the past decade, have been in the headlines around the world with the variety of moves involving physical gold. Now we learn the BRICS nations, which either produce vast amounts of gold or consume vast amounts of physical gold, may make a move to set the global exchange rate for gold. With gold being money, but being considered a commodity, the “price” of gold is actually an exchange rate the same as any other currency.
“Since Russia, China, India, Brazil & South Africa are all either large producers or consumers of gold, or both, it is highly likely that the BRICS bloc they constitute could focus its cross-border gold trading network on trading physical gold.
“Gold pricing benchmarks from such a system would be based on physical gold transactions, which is a departure from the way the international gold price is currently established.
“We (the Central Bank of the Russian Federation and the People’s Bank of China) discussed gold trading,” he said. “The BRICS countries (Brazil, Russia, India, China and South Africa) are major economies with large reserves of gold and an impressive volume of production and consumption of the precious metal. In China, gold is traded in Shanghai, and in Russia in Moscow. Our idea is to create a link between these cities so as to intensify gold trading between our markets.” Source
Actually, gold trade between Moscow and Shanghai would be strengthened since the two nations are already moving gold from Russia to China through the Central Banks for each of the nations.
“VTB Bank, Russia’s second-largest lender, said on Tuesday:
* VTB plans to supply 15-20 tonnes of gold to China in the next 12 months;
* VTB plans to continue increasing gold supplies to China, the exact volume of supply is subject to demand in the region;
* In April, VTB said it aimed to supply between 80 and 100 tonnes (2.57-3.22 million troy ounces) of gold to China per year;
* In the second quarter of 2016, VTB dispatched its first batch of gold to China, becoming the first Russian bank to start direct supplies of physical gold to the world’s largest buyer and consumer of the precious metal. Source
The Rest…HERE
