Upward Pressure on Gold Insurmountable..?

Despite the usual circumstance of galloping inflation, US and European bank failures, fund rate instability, stagflation, and global conflict, the continuing US adoption of economic sanctions versus sovereigns (just about everywhere) will likely continue to leverage gold prices higher.

Although rumour at the moment, Saudi is trading oil to China in exchange for gold:
https://www.gainesvillecoins.com/blog/is-saudi-arabia-selling-oil-to-china-for-gold
… and makes sense for any nation dumping the dollar regarding the portent for the accelerating decline of the US dollar, and potential exposure to sanctions levied by the US Axis of Evil.

Likewise, as a means to stash wayward inflationary USd billions somewhere — other than in western markets — a stable, steady and upward valuation of gold spot may present a tempting target for those sovereigns hoping to dump inflationary dollars… in exchange for a real physical asset with true intrinsic value.  Such dollar dumping could be an insurmountable obstacle for the gold cartel to overcome, as the cartel continues to suppress gold spot.

That is, as the gold cartel has done for decades. Every trading day the cartel is losing on the spot “fix” (cartel losses reimbursed by the US Fed-Treasury) and eventually those losses could potentially break the LBMA/CME/ Federal Reserve (Treasury) stranglehold on gold spot, that the western gold cartel maintains, every trading day.

Oft mentioned and recently acknowledged by US Treasury Capo Janet Yellen — in a more quavering/ stuttering vocalization than ever — the global condition is pressure to ditch the dollar, and gradually disengage from US Treasury instruments (US Bonds – bills – notes) due to real — or potential — US sanctions exposure. Namely US sanctions related to the pursuit of the conflict in the Ukraine, versus Iran, versus Syria, and a myriad of other states, the possibility of which is now leveraging tremendous pressure on many nations to ditch the dollar.

As a repository for China’s payments to Saudi for billions in oil, Saudi has likely looked askance at the renminbi and investments in China, until now. However, gold for oil is a very attractive option to Saudi Arabia for a number of reasons:

1. The SIGE (Shanghai International Gold Exchange https://en.sge.com.cn/ ), the largest gold bourse in the world, and has setup a vault system known as the International Board which allows full access to import/export of physical gold bullion, to any member of the SIGE that qualifies … that would include a sovereign such as Saudi Arabia.

2. It used to be said that, “You can buy and sell gold in China– but try getting gold out!”* (physical gold) Establishment of the International Board will likely open China for business as a major gold trader going forward.

SIGE International Board vaults:

https://en.sge.com.cn/upload/file/202001/17/2Yd14iOKsKk2kBUp.pdf

With regard to Saudi Arabia, leveraging China’s SIGE International Board vaults for physical gold trading in exchange for oil, offers a number of advantages. One is that Saudi will not support the dollar by having to accept US billions which must then be banked with the shaky/devalued western financial system; such trading which would support the ‘strengthening’ of a deteriorating US currency.

China also benefits, by not having to buy US dollars with central bank renminbi to pay the Saudi’s for oil. China’s purchase of Saudi oil with US dollars would weaken the renminbi — at a time of increasing domestic consumption in China — and would strengthen the currency of a corroding western Empire, noted for its duplicity, and predilection for death, weaponry, warfare, destruction, hatred for others, and perversion.

Underlying all of course, is the historic leverage of USA economic sanctions historically, versus regimes whose “behaviour” the US does not condone. Note that it was Trump’s Treasury Secretary, Steve “IndyMAC” Mnuchin, who leveraged US sanctions in a big way.

Mr IndyMAC Mnuchin, Dec 16, 2019:

“The reason why we’re using sanctions is because they are an important alternative for world military conflicts. And I believe it’s worked,” the secretary said. “So whether it’s North Korea, whether it’s Iran or other places in the world, we take the responsibility very seriously.”

As a result of the stupid, misguided, and frankly psychotic actions and reactions regarding the stupid, misguided and frankly psychotic regime within the Beltway (and those before!… ed.) means that pressure on the west’s LBMA gold cartel to collapse may become, as in the foregoing, inevitable and insurmountable.

If so, the day of that collapse of gold suppression by the western gold cartel is long, long overdue..

*Quote: Harvey Organ

Steve Brown