Full:
https://www.wsj.com/finance/commodi...xTjQgZLcYNZIH_NyP1K_mIgPSQkyH1rPMC0rmWePV5A==
So in 1979 rates were cut only to return with higher rates in 1980.
This time we have falling rates with ZERO chance of higher rates going forward. The debt burdens are polar.
China turning the screws on the US.
Via Hong Kong:
Hong Kong expanded plans to boost the city’s gold storage facilities, with a view to deepening integration between the Asian hub and the mainland as China extends efforts to broaden its reach across international commodity markets.
In his annual policy address on Wednesday, Chief Executive John Lee unveiled a raft of policies aimed at reviving Hong Kong’s status as a global hub for gold trading, including pledges to increase the city’s capacity for holding bullion to more than 2,000 tons over the next three years and establish a central clearing system for gold.
The move is a significant step up from recent proposals to gradually increase gold storage in the city, as the government doubles down on its ambitions to attract traders to Hong Kong and increase refining operations. Those goals underpin a longer-term strategy of strengthening the link between the mainland and Hong Kong, and Lee used his address to invite the Shanghai Gold Exchange to prepare for mutual market access in the future.
Hong Kong has historically acted as a gateway for China — the world biggest bullion consumer. Beijing, meanwhile, has made strides in recent months to open its markets to foreign players in a bid to gain influence over global pricing.
In June, the SGE — China’s primary platform for physical gold trading — opened its first offshore vault in Hong Kong and launched two contracts for international investors, a step toward reducing reliance on the US dollar and promoting wider use of the yuan in international trade.
Against that backdrop, Hong Kong is positioning itself as the preeminent trading hub in Asia while also accelerating efforts to align itself more closely with Beijing. There are fewer restrictions on imports and exports of bullion in Hong Kong — making it a natural bridge between the global market and mainland China, where controls on shipments remain strict.
The ETF's are having to play catch-up as the momentum traders start to pile into these ETF's.
Also remember JPM has taken the custodial reins of GLD and SLV and store the non-allocated physical in NY.
Fast forward to today when that's precisely what happened, and as Bloomberg writes this morning, gold has powered to a fresh record high
"after flows into exchange-traded funds hit a three-year high, with investors betting that the Federal Reserve’s rate-cutting cycle has further to run." It wasn't just gold: silver also rose, with year-to-date gains topping 50%.
China are weaponising gold:
So China has +/- 27,000 tonnes of gold.
He who has the gold makes the rules.
Chinese consumption, independent of the rest of the WORLD is driven by their increase in purchasing power, thanks to a rising gold price.
The Yuan is COLLAPSING as against gold, allowing other gold holding nations, BRICS, to increase trade (imports) from China. Which is why Chinese trade is expanding, not collapsing as the US hoped when they slapped tariffs on.
China through a 100% ban on soybean imports is collapsing the US farming industry.
The US dollar as against the Yuan is 80% overvalued. Not that the US even has a manufacturing base currently. The USD MUST revalue (lower) against gold.
jog on
duc