Gold WILL Soar! The Remonetization of Gold is Here…
Effective hours from now, a new oil futures contract denominated in Chinese yuan and convertible into gold will be open to the market.
China’s doing this to increase the demand and liquidity of the yuan, which it absolutely will. But it’s also going to dramatically increase the demand for gold.
The demand for dollars will fall, as will the need for a large reserve of Treasuries.
Oil producers will now have the option of taking dollars or gold as payment.
Unlike the dollar, the gold supply can’t easily increase with the press of a button, so the only way we can account for all this new demand is for the price of gold to rise.
Oil at $65.50 per barrel and gold at $1,350 an ounce means that an ounce of gold will buy you roughly 20 barrels of oil.
The Chinese currently import 8.4 million barrels of oil… per day!
Any country can participate, so it won’t just be China.
Even if just a quarter of these Chinese imports are purchased using gold, that’s 1/3 of the current annual gold production, which is forecasted to decrease over the next decade, not increase.
This is the remonetization of gold. Demand is going to explode, and the supply is projected to be in decline.
Gold rising is not an if question, it’s a when.
The yellow metal is up $40 per ounce since the day before the FED raised rates, something we have been consistently forecasting since the fall of 2015. Despite the headlines and expectations of the market, rate hikes are extremely good for gold.
We’re $8 away from a new 52-week high, something we predicted would happen on March 11th when we said, “FutureMoneyTrends.com believes thatwithin two weeks of the March 21st rate hike, gold will be making new 52-week highs!”
Let’s see how this plays out over the next few days.
The next breakout could take us to $1,400, which could really throw some much needed gasoline into the mining shares.
Gold’s bull market is a classic case of climbing the wall of worry. From rate hike to rate hike, gold starts higher, but yet for the past 2 years, the expectation of traders is that gold will fall and lose support, but it hasn’t, and it continues to march higher.
Expect the unexpected with gold.
This work is based on SEC filings, current events, interviews, corporate press releases and what we’ve learned as financial journalists. It may contain errors and you shouldn’t make any investment decision based solely on what you read here. It’s your money and your responsibility. The information herein is not intended to be personal legal or investment advice and may not be appropriate or applicable for all readers. If personal advice is needed, the services of a qualified legal, investment or tax professional should be sought.