China Has the Gold, The West Has Paper

Guest Post from David Smith, Originally Published on Money Metals Exchange
Money Metals readers may remember my November 2014 report in which I discussed how gold flowed into China in ‘tributary fashion’ like small streams flowing into a giant one. In this case, the gold has been streaming into China’s increasingly massive thousands-of-tons gold hoard.
In January, 2015, I penned an essay titled ‘China’s Global Gold Supply ‘Game of Stones’ outlining China’s long-range goal to dominate the world’s physical gold market.
Well, events have moved massively forward since then. I want to update you as to just how much things have changed – and how close we may be to experiencing a ‘defining moment’ in the gold market.
I’m talking about a game-changing event that could, with little warning, propel the price of gold upward by hundreds – even thousands – of dollars per ounce in the space of a few weeks… conceivably overnight! (And since silver’s price movements are highly correlated with that of gold, we could expect an upside explosion in silver as well.)

This post was published at Deviant Investor on August 26, 2017.