Chinese Set to Back Yuan with Gold

[WallyWeaver]

Wow, great news for pm bulls. Hang in there, folks, 2013 could be a fantastic year, indeed!

WW.

Massive Squeeze Coming as World Gold Council Confirms Gold-Backed Yuan

01/23/2013

King World News is pleased to break the news first in the world for our global readers that the World Gold Council has now confirmed the Chinese are going to back the yuan with gold. Today a legend in the business, Keith Barron, who consults with major companies around the world and is responsible for one of the largest gold discoveries in the last quarter century, informed KWN of this development and also stated, “... the gold and silver bulls are going to begin to trample the bears at some point in the near future.”

Here is what Barron had to say: “This is what I have heard firsthand regarding the silver shortage. I spoke to a dealer where I purchase gold and silver in the United States. He just told me that immediately after the Presidential Inauguration his firm immediately began selling the hell out of monster boxes of US silver eagles.” Keith Barron continues:

“This dealer informed me that business is absolutely crazy right now and he can't keep product on the shelf because it's flying out the door. I would also like to mention two items which are very important that the KWN readers should be aware of.

The first one is regarding an investment group….

“This is actually a hedge fund named Pacific Group, which is converting 1/3 of its hedge fund assets into physical gold. They have already taken delivery of $35 million worth of gold bars. The head of the fund was quoted by Bloomberg as saying, “In our judgment we are in the early stages of what would likely be the world's largest short squeeze in any instrument.”

This goes back to what we were talking about the last time I was interviewed on KWN regarding gold repatriation back to Germany. Basically what these guys are saying is if everyone goes to claim their gold at the same time, the world will witness an incredible short-squeeze.

I believe the world will see that short squeeze in gold. The Germans have given the U.S. 7 years for a small portion of their gold, which is supposedly stored at the Fed, to be repatriated. But I'm sure that if it starts to look difficult to get it back the Germans will accelerate the process. This will simply add fuel to the massive squeeze which lies in front of us. This will literally cause a feeding frenzy as the gold market explodes higher.

The second thing I want to make KWN readers aware of is the report which was commissioned by the World Gold Council. This is an incredible document, especially coming from the World Gold Council because it's basically saying that the Chinese are going to back their currency with gold. This would, in turn, displace the US dollar and make the Chinese yuan the world's reserve currency.

The Chinese are sitting on piles of dollars right now, and while the US continues its decline, the reality is that all of the fiat currencies are in a race to the bottom. We just saw the Bank of Japan yesterday talk about opening up QE and printing vast sums of money. This will be an attempt to reverse their deflation with inflation. This move by the Japanese is very, very bullish for gold.

But between what is happening with the set up for the coming short squeeze in gold, coupled with the Chinese moving to back the yuan with gold, and the shortages we are seeing in the silver market, the outlook for gold and silver going forward are spectacular. Quite frankly, the gold and silver bulls are going to begin to trample the bears at some point in the near future.”

Link: http://kingworldnews...acked_Yuan.html

[64jaguar]

Thanks WallyW, I've been reading and saying this for a while. there have been various sources out of China making this claim and China has been buying every ounce of Gold and Silver it can get its hands on with all the soon to be worthless Dollars it holds. If the Chinese pull this off the Dollar and many Foreign Fiat Currencies are a Dead Duck! Better stock up on those Precious Metals Folks!