China and Hong Kong Make The Case For Gold Alongside the OBOR

China and Hong Kong Make The Case For Gold Alongside the OBOR by London Paul – The Sirius Report

In  yet another clear signal that we are going to see the adoption of Gold and the return of “sound money” in the new economic, political and social global paradigm shift ,we note that the Chinese Gold & Silver Exchange Society (CGSE), Hong Kong’s gold exchange, is currently in talks with Singapore, Myanmar and Dubai to establish a gold commodity corridor to promote yuan-denominated products under the umbrella of China’s One Belt One Road Initiative (OBOR).

The plan is to develop this corridor via the establishment of an infrastructure network utilising Hong Kong as a base, and connect the proposed bonded warehouse in Qianhai with commercial users and precious metals traders in countries across the entire OBOR.

The expectation is that this will not only significantly increase the demand for kilogram bars but it will also increase the demand for yuan-denominated products multifold. Turnover in the last Chinese Year at the Hong Kong gold market averaged between HK$150 billion (US$19.2 billion) and HK$180 billion per day, while averaging about 30 billion yuan (US$4.7 billion) to 40 billion yuan for yuan-denominated products.

The proposed bonded warehouse in Qianhai free-trade zone, which is near to Shenzhen, is capable of storing 1,500 tonnes of gold, is expected to provide custodial and physical settlement services. Such is the pace of this initiative that this warehouse is expected to commence operations within the next three months having already been given tacit approval by Customs officials.

What this initiative signifies is that China in conjunction with Hong Kong is seeking to develop a OBOR gold market and could easily expand the bonded warehouse mechanism, across the entire OBOR initiative, as seen in Qianhai. In the process it will also enhance  Hong Kong’s status as a major international gold hub. The case for the adoption of Gold could not be any clearer and with it we will see the end of FIAT currencies.

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The Sirius Report

We are an independent news website with the purpose of giving an alternative perspective on mainstream news regarding recent developments that are shaping a new political, economic and social paradigm. contact page - The site is run by London Paul, who is a frequently cited source of Dr. Jim Willie The Golden Jackass, and his partner Lisa. *Please also note that the name The Sirius Report is in no way intended to be related to any form of ET discussion or observation.