More Gold Flowing East
More Gold Flowing East by Rory – The Daily Coin
The Turkish central bank has added some 3.8 million ounces of gold to their reserves during 2017 after offloading more than 3 million ounces in the second half of 2016. Not only did the officials in Turkey come to their senses they have been more aggressive about reacquiring their gold than they were offloading their gold in 2016. Then, on top of this, Turkey is encouraging their citizens to stop saving in Federal Reserve Note, US dollars, and instead save in physical gold. Both plans are working as Turkey is now importing a great deal more gold than in 2016.
It is not just Turkey, which is a member of the SCO, BRI and other regional alliances, it is countries like Kazakhstan and Kyrgyzstan that are not only acquiring gold at the central bank level these nations are encouraging their citizens to acquire gold as well. This is going to put even more pressure on the physical gold market over the coming years. With the now confirmed, in a court of law, rigging of the gold market “price” this is keeping gold just above profitability for gold mining companies. With these companies unable to conduct research and development of new mines we are beginning to see real strain within the mining sector. It is only a matter of time before this begins to show up in the gold market with fewer ounces available on the open market. We have already reported on China’s largest mining operation suffering a 10% decline in production and we expect to see a lot more of this during 2018/2019 timeframes.
We can’t forget Russia is acquiring physical gold at the central bank level and, if Russia maintains the status quo she will overtake China as the fifth largest holder of gold at the central bank level. China, on the other hand, has not added a single ounce to their official gold holdings since October 2016. This is not to say China has stopped adding gold to their stack, they are just not reporting it for “official IMF” purposes. We suspect China is adding hundreds of thousands of ounces each month to their stack through their various other means. Remember not only is China the worlds largest producer of gold she is also acquiring gold mines outside of China and the gold produced that is acquired by China does not have to be reported on the “official IMF” side of the books.
With the balance of power now shifting from away from the US/UK axis the nation states within the Mackinder’s Heartland are beginning to truly step up and show the world that gold is going to be part of trade settlement. What form it will take is still unknown, however, gold is going to be part of the future. As we just pointed out gold is already part of the global monetary system, it is just not used in everyday settlement. We this as changing over the course of the next few years – how many years, at this point, is anyones guess. It could be tomorrow or sometime during the 2030’s. From all indications it appears we will begin seeing a true shift sometime during the 2020’s. We at The Daily Coin would like to see this, but we are concerned as to what the transition period will look like. If history is any sort of teacher it will look like a lot more death and destruction followed by a rebuilding period. We don’t wish this to happen, it just seems it is the way it has always happened.
As these Eastern nations continue to grow stronger through economic and military alliances the Western nations continue to use their war machines as the sole arbiter. As we are seeing everywhere outside the US/UK alliance threats, war and destruction are ways of the past and people the world over are ready to try something different. As Alasdair Macleod, GoldMoney, explained during one of our interviews people that hold physical gold seem to be happier and more grounded. Based on what we are seeing where countries are encouraging their citizens to acquire physical gold we would tend to agree with Mr. Macleod’s assessment.