Gold Expected to Soar as China Makes Big Move to Dominate the Oil Market
With China and the U.S. locked in a battle for world economic supremacy, the stage is being set for a major surge in gold prices. You may be surprised to learn the driving factor isn’t President Trump’s implementation of trade tariffs on Chinese aluminum and steel. It isn’t Chinese currency manipulation either.
More importantly, it’s China creating a market for oil that allows for the large-scale trading of oil for gold. This move is sure to drive massive demand for gold while striking a devastating blow to the dollar.
What does this mean for you? It’s time to put some distance between your assets and the dollar. Invest in gold now before global demand prices you out of the market.
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China Just Ushered in the Age of PetroGold
What does oil have to do with gold prices? Most countries that purchase oil need to do so with U.S. dollars because the dollar has been widely recognized as the world’s reserve currency since 1970. China however, turned that system on its head Monday when it launched the world’s first yuan-denominated oil contracts.
The ultimate goal, of course, is to knock the dollar off the throne as the world’s reserve currency and usher in the age of the yuan.
And what is the yuan backed by? You guessed it…gold.
China’s yuan-denominated contracts will allow its trading partners to pay with gold or convert yuan to gold. This is could mean the death of the Petrodollar.
Why Gold Could Skyrocket as a Result
As China welcomes more and more contracts, massive transactions will flow out of the dollar and into the yuan and gold. China knows countries don’t want to hold large reserves of the yuan and gold offers the perfect solution. China is about to create huge demand for gold worldwide. Physical gold is being reintroduced to the global monetary system in a major way. That makes right now the time to buy.
As the world’s largest oil importer, China brings a lot of buying power to the table, and will no doubt use that pressure to persuade other countries to trade oil in yuan and gold. Can the dollar survive being dethroned as the world’s reserve currency? It sure doesn’t look like it. Read more about the impending rise of the Petroyuan.
Find Out How to Start Investing in Precious Metals
As China works to dethrone the dollar as the world’s reserve currency. Here at home, wild swings in the stock market are an almost daily occurrence and all signs point to a major bubble burst. While this isn’t great news for the American economy, it’s a potentially huge opportunity for those who invest in gold.
Read Our In-Depth Petrodollar Reports
Our analysts have been keeping a close eye on developments in China and have compiled further information into our bombshell report, The Petrodollar Part 3: China’s Rising Power.
Learn more about China’s rising power in our new Petrodollar Report.