At the start of the year, we noted that gold supplies on trading exchanges were trending lower – a sign that someone was acquiring physical gold.
Now, a report from Goldman Sachs suggests that the mystery buyer was, as we suspected, China. And that they added a whopping 50 tonnes of the metal to their holdings in February alone:
China tends to keep its cards close when buying gold, only periodically updating its disclosures every few years.
We wouldn’t be surprised if that’s the case here. And that China’s buying could be part of creating a regional currency with trading partners – including what we called “BRICS Bucks” last year.
China may not revalue its currency into a gold-backed system. But it’s backing its economy with gold, and the size of its buys, even with the metal near all-time highs, suggests that gold could trend far higher.
And with silver heading into the high $30 range and a multi-year high, we could be at the start of a big rally for the metals that creates huge wealth.
We trust we’re not just preaching to the choir – but now would be a great time to review our research into gold.
~ Addison
P.S.: With the metals space in mind, our Portfolio Director, Andrew Packer, will be attending the Rule Investment Symposium in Boca Raton next month.
The Symposium is a five-day affair featuring in-depth research from dozens of small-cap resource companies, including gold and silver mining companies – but also copper, uranium, and other critical commodities we’ve explored in-depth in our research over the past year. Click here to learn how you can join in the fun.
As always, your reader feedback is welcome: feedback@greyswanfraternity.
How did we get here? Find out in these riveting reads: Demise of the Dollar, Financial Reckoning Day, and Empire of Debt — all three books are now available in their third post-pandemic editions. You might enjoy one or all three.
