Gold is moving up solidly on Monday morning as bargain hunting and safe haven demand continues. The U.S. dollar index fell to a three week low on Friday but is seeing the typical corrective bounce today. Gold last reported a.m. is $1202.60 and silver is $16.42.
The EU hangover continues this week as neither Greece nor its creditors have any idea what the next fateful step may be. In effort to appease the EU and IMF, the Greek government decided to remove or “reshuffle” its management team as Finance Minister, Yanis Varoufakis is given the ax. Following an abysmal performance last week speaking with EU creditors accompanied by insults directed at Mr. Varoufakis, Prime Minister Tsipras saw the opportunity to stall again and he’s taken it.
It’s official, all Greece really needed was a better spokesperson. The new “golden calf” is Foreign Minister Euclid Tsakalatos, who will be coordinating efforts on behalf of the team negotiating a reforms deal with EU leaders. The move caused Greek bonds to soar and a heavy dumping of U.S. dollars. A new salesman works every time but the downside is Greece still can’t repay its debt.
China has made it known that it wants to move the Yuan into the international spotlight by being included in the IMF, Special Drawing Right (SDR) this year. The opportunity to compete with or defeat the U.S. dollar is looking better all the time, especially as China keeps producing and buying more gold than anyone in the world. The Chinese have been secretive about exactly how much gold they hold as they haven’t updated their official gold reserve since 2009. Since then, estimates are that China may have accumulated as much as 10 tons in comparison to the U.S. that holds around 8113 tons as monetary reserves.
If China wants to be considered a serious contender with the IMF it’s going to have to be honest on exactly how much gold it really does have. If China is successful in its attempts, it would see a tremendous increase in voting rights as opposed to now where it only holds a 3.81 percent on IMF votes compared to the U.S. at 16.75 percent. Washington will undoubtedly attempt to block China’s effort’s but it may be too late. Recently our allies joined China’s new Asian Infrastructure Investment Bank despite repeated begging by Washington asking them to “not join.”
China has been buying all the gold it can get its hands on at basement prices because they know gold is the only way the Yuan will ever conquer the dollar. We are witnessing a global monetary power shift and the dollar is thus far, losing on all fronts.
While Washington takes the U.S. further into debt it can’t repay, China is courting foreign nations with the prospect of future prosperity in gold.
No currency last forever, not even the good old U.S. dollar. The end game looks well on its way.
We have the option of staying in bloated stock markets or moving into assets that actually protect wealth without the need for smoke and mirrors.
Call Gold Goliath and begin protecting what you’ve worked for with real physical gold and silver. 1-800-577-3195
Gold Goliath is not your typical gold dealer.