Gold Rush Is On In China (to replace USD with a gold-backed Renminbi?)

"Based upon the charts below, and assuming China’s yearly gold accumulation remains stable (i.e. a 10.7% CAGR),  China will possess nearly 14,000 tonnes of gold by the year 2020. Compare this to U.S. gold reserves at 8,134 tonnes, which is today the world’s largest gold holder.  This gives credence to the oft expressed idea that the PBOC in Beijing plans to eventually back its Renminbi via gold with a view to replacing the U.S. dollar as the world’s reserve currency.

World’s Largest Consumer of Gold

The country overtook India as the world’s largest consumer of gold in 2013, with consumer demand soaring 32% to 1,066 tonnes for 2013. That’s the most gold ever demanded annually by one country’s consumers.

World’s Largest Importer of Gold

Chiina imported more gold imports than any other country – a record 1,108 metric tons in 2013, up 33% from a year ago – via Hong Kong.

World’s Largest Miner of Gold

China is already the world’s top producer of gold, mining 437 tonnes in 2013 on industry estimates, with the largest annual increase globally for 2013 having displaced South Africa as the world’s largest gold producer in 2007.

Below is the same view over 84 years showing the parabolic nature of China’s gold accumulation (Production plus Net Imports), especially since the year 1980. It is imperative to note that China’s gold accumulation is enjoying an astounding 10.7% Compound Annual Growth Rate (CAGR).

Above Charts Source Courtesy of Nick Laird & http://www.sharelynx.com/

Forecast for China’s Gold Accumulation by 2020

Based upon the above charts and assuming China’s yearly gold accumulation remains stable (i.e. a 10.7% CAGR),  it translates to the Sino nation possessing nearly 14,000 tonnes of gold by the year 2020. Compare this to US gold reserves at 8,134 tonnes, which is today the world’s largest gold holder…

Conclusion

History is testament that  a universally accepted  world currency has material control over all other currencies as the18^th century financier Mayer Amschel Rothschild once said:  “Give me control of a nation’s money and I care not who makes the laws.”

In the event China backs its Renmini currency with sufficient gold,  The Peoples Bank of China will control the world’s currencies from Beijing – and that includes the U.S. greenback."

at http://www.munknee.com/gold-rush-china-replace-usd-gold-backed-renminbi/