CLOSE TO NEW GOLD STANDARD? Australia Exports Record Amount Of Gold To China

Are the Chinese getting close to announcing a new gold-backed currency?  Well, if the record amount of Australian gold exports into China is an indicator, it may be close at hand.  While the Chinese have been importing a lot of gold from Australia, it reached a new record high in 2017.

According to the recently released data by the Australian Government June 2017 Resources and Energy Quarterly, Australia exported more gold to Hong Kong and China during the first quarter of 2017 than any other quarter in history.

Australian gold exports to Hong Kong and China were 54% higher Q1 2017 versus the same quarter last year:

As we can see in the chart above, Australia exported 57.4 metric tons (mt) of gold in Q1 2017 compared to 37.2 mt Q1 2016.  What a difference in ten years.  Australian gold exports to Hong Kong and China were nonexistent in 2008.  However, after the U.S. and global market meltdown that year, China started to import more gold, especially since 2011.

Even though I compared Q1 2017 Australian gold exports to China to the first quarters of previous years in the chart above, the data for all quarters shows that the present quarter is the highest amount on record.

Furthermore, Australia is now exporting the majority of its gold to Hong Kong and China.  For example, of the total 75 mt of Australian gold exports Q1 2017, 57.4 mt or 77% went to Hong Kong and China.  Here was the breakdown for Q1 2017.

Australian Gold Exports Q1 2017:

Hong Kong & China = 57.4 mt

U.K. = 7 mt

Singapore = 2.1 mt

India = 2.0 mt

Thailand = 2.0 mt

Other = 4.5 mt

In addition, of the 83 mt of Australian gold exports Q4 2016, two-thirds made their way to Hong Kong and China.  So, we can plainly see that China is importing the most gold from Australia ever.

Now, what is even more interesting is that Australian exports more gold than they produce from their domestic gold mines.  This is also true for the United States.  I decided to take the gold mine supply and gold export figures from these two countries to produce the chart below:

Here we can see that Australia and the U.S. produced a combined 510 mt of gold in 2016, but their gold exports totaled 762 mt.  Thus, these two countries exported nearly 50% more gold than they produced in 2016.

Here is a breakdown of Australian and U.S. gold mine supply and gold exports:

Australia Gold Production vs. Gold Exports

2014 = 274 mt Gold Mine supply vs. 289 mt Gold Exports (difference = +15 mt)

2015 = 279 mt Gold Mine supply vs. 282 mt Gold Exports (difference = +3 mt)

2016 = 288 mt Gold Mine supply vs. 329 mt Gold Exports (difference = +41 mt)

United States Gold Production vs. Gold Exports

2014 = 210 mt Gold Mine supply vs. 500 mt Gold Exports (difference = +290 mt)

2015 = 214 mt Gold Mine supply vs. 494 mt Gold Exports (difference = +280 mt)

2016 = 222 mt Gold Mine supply vs. 433 mt Gold Exports (difference = +211 mt)

While Australia is exporting more gold than it produces, the U.S. is clearly the BIG WINNER here.  As I have stated in previous articles, the U.S. is not only exporting more gold than it produces, it is also exporting more gold than it imports.

In 2015, the United States produced 214 mt of gold and imported 265 mt for a total of 479 mt.  However, the U.S. exported a total of 494 mt of gold in 2015.  Which means, it exported 15 mt more gold than it produced and imported that year.

Regardless, Australia and the U.S. continue to export the majority of its gold to Hong Kong and China.  For example, Australia and the United States exported 121 mt of gold to Hong Kong and China during the first quarter of 2017.  Australia exported 57.4 mt, while the U.S. exported 63.3 mt.  Thus, Hong Kong and China received 55% of all Australian and U.S. gold exports Q1 2017.

Could the increase in Chinese gold imports suggest they are setting the state for a new Gold-Back Currency or Trade?  According to the recent article on Zerohedge, Moscow And Beijing Join Forces To Bypass US Dollar In Global Markets, Shift To Gold Trade:

The Russian central bank opened its first overseas office in Beijing on March 14, marking a step forward in forging a Beijing-Moscow alliance to bypass the US dollar in the global monetary system, and to phase-in a gold-backed standard of trade.

…. Speaking on future ties with Russia, Chinese Premier Li Keqiang said in mid-March that Sino-Russian trade ties were affected by falling oil prices, but he added that he saw great potential in cooperation. Vladimir Shapovalov, a senior official at the Russian central bank, said the two central banks were drafting a memorandum of understanding to solve technical issues around China’s gold imports from Russia, and that details would be released soon.

If Russia – the world’s fourth largest gold producer after China, Japan and the US – is indeed set to become a major supplier of gold to China, the probability of a scenario hinted by many over the years, namely that Beijing is preparing to eventually unroll a gold-backed currency, increases by orders of magnitude.

In order for China (and Russia) to unroll a gold-backed currency, China must acquire as much gold as it can before the global currency reset.  It is quite interesting to see the record amount of gold being exported from Australia to China as talks increase about a new Chinese-Russian gold-backed currency.

With the economic indicators in the U.S. and abroad peaking and rolling over, forecasts that a major market correction to take place towards the end of this year may indeed motivate China to roll out its gold-backed currency sooner rather than later.  However, it’s a matter of WHEN, not IF the world moves to a new gold-backed currency system.  Investors who continue to  play RUSSIAN ROULETTE in the markets will likely be the biggest bag holders in history when the world switches over to a new gold-backed currency system.

NEW INFORMATION:  For SRSrocco Report Followers

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33 Comments on "CLOSE TO NEW GOLD STANDARD? Australia Exports Record Amount Of Gold To China"

  1. What’s your thought on silver in the reset? Do you think it will be part of the new monetary system like gold, or do you think silver is too important as a commodity and will be left to find its own value as non-monetary asset.

    Signed up as a silver patron. Thanks for bringing this information to the masses.

    • Historically Peterdivine gold and silver tend to increase or decrease in unison.

      In 1932 silver; in a round number was $0.30c. At $15.00 today that is an increase of 4900%. Gold at $20.00 in 1932 and at $1200.00 today is an increase of 5900%

      • GrahamB,

        I agree with you. Even if gold is only used in the new currency-trade system reset, the price of silver will move up right alongside of gold.

        steve

    • Petedivine,

      Thanks for becoming a SRSrocco Report Patron. I really appreciate the support.

      I don’t know if silver will be apart of the RESET, but the price will move up once gold is used in the new currency or trade system. There is so much negatively going on in the markets now that investors holding most STOCKS, BONDS and REAL ESTATE are going to be in serious trouble. While most people believe the Crypto-currencies are Ponzi Schemes or bubbles, I still forecast a lot of money moving into them in the future.

      This is not bad for Gold and Silver… it’s actually very good news.

      I really don’t believe precious metals investors realize what they are holding onto with their silver investment. Even though the silver price has been low for the past five years, it has just conditioned investors that it will continue to stay low for quite a while.

      However, I see the value of Silver moving up just like Bitcoin in the future.

      steve

  2. China will not have an explicitly gold backed currency, but they will provide the means for energy suppliers to readily convert their Yuan to gold via a deep, and fully allocated Shanghai Gold Exchange. That way, if Beijing debases its currency, then Russia, Iran, Saudi and others can bid up gold with their excess Yuan and make real time decisions as to whether or not they will trade their oil for Yuan. No more dollar laundering scams and no need for China to gut its manufacturing base and own citizenry to maintain a powerful position on the world’s stage. It’s a very elegant solution for all parties involved (sans the American Anglo oligarchs).

    • Gold would have to go up several times because at these prices banksters would buy back gold easily. It would suffice to convert dollars to yuan and suck out gold from china. Some other mechanism is necessary to exploit the value of gold.

  3. Will be there as your patron member Steve, thanks….regards

    • Bhavesh,

      Thanks for following the site and I appreciate your support as a SRSrocco Report patron.

      steve

      • So . . am I getting this right. . .
        People who seem to know alot about economy still depend on 1$ a month to survive?
        Interesting . .

  4. Jeff Harrison | July 19, 2017 at 7:03 pm | Reply

    So the US in effect is cutting it’s own throat by sending our gold to China; brilliant.(sarc)
    Must be a reason but heck if I know what our overlords-I mean protectors-are up to.

  5. Jeff Harrison | July 19, 2017 at 7:06 pm | Reply

    Oh yeah’ $1 a month won’t hurt me (much) and might help you; glad to contribute; I appreciate your work Steve; found you ala TFMR

    • Jeff Harrison,

      Thanks a lot for becoming a Patron. Yes, you pledge most certainly helps. Glad you find the work at the SRSrocco Report site interesting.

      steve

  6. Jim Rickards says!
    Quote:
    “Tight money, a weak economy, and a stock market bubble is a classic recipe for a stock market crash. It’s time for investors to go into a defensive crouch by selling stocks and reallocating assets to cash, Treasury notes, gold and gold mining shares”.
    http://www.zerohedge.com/news/2017-07-19/fed-has-hit-pause-button

  7. “WHEN, not IF the world moves to a new gold-backed currency system”

    Be it full or partially backed, I think you have left out a very important risk. The government. The risk of it being directly confiscated or “discouraged”.

    History is littered with examples showing it is not uncommon for government to directly take from the people, including gold and silver – King Henry VIII of England when he raided silver from both the church and directly from coins in circulation or the US 1930s etc. However, it would very likely be discouraged by making it difficult to hold, difficult to sell, difficult to profit on (heavy taxes could easily be applied). Infact, you can see this already occurring in the world. In the UK over the past few years we have seen the government making people declare your safety deposit contents and now, more recently, the big banks are just removing and cancelling safety deposit box services altogether. Going back to confiscation of gold and silver, the fact that Greece is making serious moves towards start mass confiscation of gold from safety deposit boxes shows that this is a very real risk to holding gold and silver. Gold and silver may appreciate dramatically, however, to realize your gold and silver investment you would likely be forced to the black market.

    • DisappearingCulture | July 20, 2017 at 7:42 am | Reply

      adam,

      Anyone who keeps gold bullion or coins in a safe deposit box isn’t making a wise decision.
      “In the UK over the past few years we have seen the government making people declare your safety deposit contents…”
      “Greece is making serious moves towards start mass confiscation of gold from safety deposit boxes…”
      As I was saying….

      “Gold and silver may appreciate dramatically, however, to realize your gold and silver investment you would likely be forced to the black market.” So be it.

  8. I have read several ideas on what a global reset is. One is all debts go to zero, but then what happens to cash in a bank? Two, it’s a global collapse and we all start over with a new currency and zero bank account/401s/IRAs etc. balance since the old currency is now worthless.
    So what actually is a reset?

  9. Because I live abroad I’ve chosen the free donation. Look at the news today, “Russian Ministry of Finance to consider possibility to cancel VAT on gold”
    http://rusmininfo.com/news/19-07-2017/russian-ministry-finance-consider-possibility-cancel-vat-gold

  10. Lawrence Crissman | July 20, 2017 at 2:37 am | Reply

    Steve:

    I would prefer to make a once a year donation of $15 rather than see paypal charge me for $ per month.

    What is the chance that you could make that an option?

  11. Steve,

    Did you see Bix Weir’s video reply to Chris Duane regarding silver & cryptos? Bix knows what he is talking about. It is wise to have a position in both PMs and crypto. By the way, I will support the site if you post a simple Bitcoin, PIVX, Ethereum, or HyperStake address on your website. I’m not going to sign up through a facebook link to help donate. You could simply post the appropriate cyrpto string address on your site, or use a service like coinpayments.net

  12. Chinas official gold reserves are 1842 tonnes. their currency reserves including gold are $3057000000000. I make that 2% of total reserves less the gold holding. Thats not much gold, backing their reserves so they would be insane to go onto a gold standard, anytime soon.

  13. We will not see any Gold standard any time soon ….. although I wish that happened

    • One more time, the pendulum will swing. From currencies to money. And then, the clock stops.

      • Possibly ……….. but the whole article is just a wishful thinking, drawing conclusions that record high gold imports will lead to gold standard is just ludicrous.
        China/Russia can not impose gold standard nor is it in their interest right now ….. they are still run buy same/similar central banksters like those from the west.

  14. I’m in at Bronze Steve. Appreciate your thorough research and honest opinions as well as subjects other so-called “experts” fail to mention/think of.

    • John,

      Thanks for the support. Yes, we try to put out analysis that goes a few steps beyond which most other analysts cover.

      steve

  15. I think somewhere down the line Australia will wish they had kept a lot of their gold.

  16. Dear Steave,
    Thx for the good articles and analysis.
    I have signed up for a monthly subscription on Patron and i hope alot more will follow.
    Regards,
    Tony (Holland)

  17. Of course China will back the Yuan w/ Gold. The USD will crash and we have seen this play out for a few years now. The best gold to own? Gold/silver coins/medals minted in China. Pandas, lunar, etc.. Early years are best as the Chinese and world will soon flood into NGC or PCGS graded coins. They will see a huge price explosion above bullion. Chinese Coin Forum or Coin Compendium Forum….click MCC list….

  18. China and Russia is importing gold – maybe a big mistake?
    JP Morgan is “importing” silver!
    Modern world needs silver, not gold! Silver is the “new oil”.
    Compare figures in Gold-Eagles to Silver-Eagles!
    Silver in Fort Knox???
    From Petro-Dollar to Silver-Dollar???
    Gold cheaper than Silver???

    Crazy? Steve, please think about this.

    Arno (Germany)

  19. There’s been talk of China backing their currency with Gold for years. Nothing has happened and nothing will happen.
    No country has a Gold standard in the world. Its like going back to typewriters and fax machines it just wont happen.

    The Australian govt sold off its Gold a long time ago. The fact Australia hasn’t any Gold doesn’t seem to worry the economy. There hasn’t been a recession in Australia for over 25 years! Australia will continue to mine & sell its Gold to get foreign currency. Let the Chinese & Indians buy Australia’s Gold. Nobody cares.

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