New accusations are coming to light over the, now tapering off, protests for Democracy in Hong Kong. More than a few analysts are hypothesizing that the western world agitated the protests over the newly implemented Shanghai Gold Exchange that opened for business this past September.
It is no secret that China is liberalizing the renminbi, or Yuan, and seems to be making a push to be included in the IMF's Special Drawing Right which is a move toward making the Yuan an official world reserve currency. We have hypothesized a few times how China would pull this off considering their Communist form of government and strict currency controls. One way would be to back the Yuan with Gold.
We recently published an article that explored the possibility that China may follow FDR's example from the Great Depression with regard to gold confiscation and re-pricing to hedge against the looming collapse of the U.S. Dollar and to move their currency into the forefront. READ ARTICLE HERE.
With the opening of the Shanghai Gold Exchange it is adding immense pressure on the western world's stranglehold on gold price manipulation via the COMEX. It is no secret that the COMEX has been aiding in the price manipulation of the Gold since 2012. The Shanghai Gold Exchange settles futures contracts in physical gold while the COMEX has been settling in cash. If one complains that COMEX is not settling in physical gold then you will find yourself banned from the exchange. Nice huh...
If the Shanghai Gold Exchange takes off and exposes the COMEX's con game then it will destroy the USD through a gold and currency price reset. Many speculate, as do we, that China will re-price gold through this new exchange to or near its actual value. This would devalue the USD and all but destroy the COMEX.
It does seem a bit coincidental that the Hong Kong protests ignited at the time the Shanghai Gold Exchange opened for business. If one finds this theory a bit far-fetched then one has no idea how deep the price manipulation of gold runs and why. The suppression of gold prices is 75% of the reason the dollar has outpaced forecasts and stabilized after the crash of 2008. Goldprices were rising to uncontrollable levels after the crash and someone had to do something because if gold were allowed to rise to $3000 or $4000 an ounce then many nations would have invested in the shiny yellow rock instead of the USD and Euro.