Loading ...The world is waking up to Gold as a formal replacement/substitution of US Treasuries as the world’s Global reserve asset.
On the surface of it, a very early buy-season is kicking in. But here is the catalyst. This is what is different. This is what noone is talking about, but everyone is paying attention to:
A story by Reuters implying that China may issue Gold Bonds is starting a realization that Gold may finally be formally launched as a reserve asset. This is an attack on the US Treasury dominance as Global reserve asset.
Here is the phrase that Reuters story posted just hours ago that matters:
In a war with the U.S. over Taiwan, China would need to create a global network of companies under U.S. sanctions, seize American assets within its borders, and issue gold-denominated bonds, according to Chinese government-affiliated researchers.
This explains why Gold is rallying, Why Treasuries are selling off, and why China continues to dump them along with the rest of the world at a more accelerated pace. This is precisely why.