Are You Ready for China’s “Golden Surprise”?
China is sucking up gold faster than pretty much any other country in the world right now. Over the past several months, they’ve increased their national gold reserves several times over, and their buying activity still isn’t slowing down. However, nobody knows for certain exactly how much gold China actually has in its possession. And when the truth finally comes out, it could shake the global economy.
Some are speculating that China could make the big reveal sometime in October. Tom Cloud says if that’s the case, we should be ready for China to spring a “Golden Surprise” on the U.S. Here’s more from SRSRocco Report:
In Tom Cloud’s precious metals update this week he discusses how a source in Europe, which he has known for more than 35 years, has told him that there is going be a surprise as China may announce they have more gold in their official reserves than the United States.
Tom Cloud continues by saying, this surprise announcement by the Chinese is not a fact or guarantee, but he states that this is a very good source he has used for over 35 years. It will be interesting to see what gold figure China announces as they will be apart of the IMF SDR- Special Drawing Rights as of October 1, 2016.
There has been a lot of speculation on the amount that China will release as the official gold holdings. Tom Cloud explains that the Special Drawing Rights when China gets them in the beginning of October will be weighted based upon the value of the other five currencies (Chinese Yuan, U.S. Dollar, English Pound, Euro & Japanese Yen).
Tom goes on to say that if his source is correct that China announces more official gold reserves than the United States, there will liekly be a liquidation of U.S. Treasuries worldwide.
If this turns out to be the case, there’s no telling what it could do to gold prices. But since we know it will cause a big scramble for physical gold, we can only assume it will drive prices upward.
Tell us what you think in the comments.