Tom Cloud Precious Metals Update: Will China Announce They Have More Gold Than The U.S.?

In Tom Cloud’s precious metals update this week he discusses how a source in Europe, which he has known for more than 35 years, has told him that there is going be a surprise as China may announce they have more gold in their official reserves than the United States.

Tom Cloud continues by saying, this surprise announcement by the Chinese is not a fact or guarantee, but he states that this is a very good source he has used for over 35 years.  It will be interesting to see what gold figure China announces as they will be apart of the IMF SDR- Special Drawing Rights as of October 1, 2016.

There has been a lot of speculation on the amount that China will release as the official gold holdings.  Tom Cloud explains that the Special Drawing Rights when China gets them in the beginning of October will be weighted based upon the value of the other five currencies (Chinese Yuan, U.S. Dollar, English Pound, Euro & Japanese Yen).

Tom goes on to say that if his source is correct that China announces more official gold reserves than the United States, there will liekly be a liquidation of U.S. Treasuries worldwide.

Additionally, Tom says in his 40 years of business he has never had so many top money managers ($100 million to $1 billion in funds) call about how their client can get into owning physical gold as an investment.

Furthermore, Tom share more information about the his low cost precious metals storage program.  He gives an example how he saved one client a lot of money switching over to the IDS Storage facilities which he uses for most of his clients.

Lastly, he describes how two banks purchased two orders of precious metals last week.

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30 Comments on "Tom Cloud Precious Metals Update: Will China Announce They Have More Gold Than The U.S.?"

  1. silverfreaky | August 30, 2016 at 3:21 pm |

    Sounds strange!And why not sell US-Bonds and change in Gold.The chinese are the biggest US-Debt Holder.

    • Chinese will do nothing as usual, they will just take place into the BIS, IMF so that everything could continue for a while longer…

  2. “China may announce they have more gold in their official reserves than the United States.”

    and everyone will believe them, too!

    hint: the gold is owned by the chinese communist party ruling class families. not by china, except as china itself is owned by the chinese communist party ruling class families. which it is.

    hint #2: the gold is not in china.

  3. What purpose would it serve for China to announce they have more gold then the U.S.? As an exporting nation China gains a significant advantage against the U.S. With a strong Dollar weak Yuan strategy, They also hold a lot of U.S. Debt. A strong Dollar means their debt has more value. I’d be curious to understand the strategy behind a strong Yuan and the advantages China would derive from such a policy.

    • Couldn’t have asked it better myself, Pete. On the one hand, it would certainly appear that China wants its renminbi to be recognized as a major intl trade currency, and that they understand that the best way to prove that it is worthy to hold that position in these times is the same way it has been shown for thousands of years–to prove that is backed by gold as well as or better than any other intl currency (ie, contrary to what the brainwashed and arrogantly ignorant Western presstitutes love to state, when the financial rubber hits the economic road, gold is not and NEVER has been a “barbarous relic”).

      On the other hand, as stated, there is global market advantage of having a weak currency. Suddenly announcing to the world that their gold backing it supreme would likely blow their currency completely out of the SChina Sea into the stratosphere, relatively speaking.

      And again, as gman says, we don’t really know who exactly holds the gold. Does some vault have to be opened and all the nicely stacked gold bars have to be shown? To whom? Do they have to be allocated? Could the Chinese say, we’ll show you ours, if the US show us theirs…openly, in front of the whole world? Wouldn’t that be sweet? But again, why would they if they indeed believe the gold is not there? That would send possibly terminal shockwaves through the printed to oblivion backed by nothing FRN world…cutting off their FRN packed nose to spite their inscrutable yuan face? Not very Chinese.

      Bottom line: I don’t see how this will be anything remotely approaching something “simple.”

  4. China will absolutely not announce that they have more gold than the US. Sorry. 🙂

    Mike

    • I don’t think so either. Why would they weaken their position by doing that?

      • Does it necessarily strengthen their currency? They aren’t going to announce that the Yuan is gold backed just that they have a lot of gold. They still have an insane amount of yuan denominated debt out there. Maybe it works out that way but I’m not entirely convinced that it’s such a straight line of such short distance from “We have a lot of gold” to “Then your currency must be much much more valuable than we thought.” A Rudy Havenstein plus gold holdings may still be Rudy Havenstein.

        • “Does it necessarily strengthen their currency?”

          remember, bad money drives out good. a currency is backed by gold only if it can be exchanged for gold. if any currency can be converted to yuan and the yuan can be exchanged for gold, there would be no gold in chinese reserve vaults the next day.

          • The yuan will never ever exchangeable with gold. You will have to believe the chinese will tell you about the gold behind their yuan (smae with USD).
            Obviously, for USA, it can happen from time to time to say the truth, for a chinese it has never happen !

  5. Why would China’s announcement of more gold holdings than the U.S. result in U.S. treasuries being liquidate worldwide? That is conjecture. Some conjecture comes to be proven as fact, but right now that is a guess as to what would happen imo.

    • Um, perhaps because it would indicate that the CNY has greater REAL backing than USD? Perhaps the USD Emperor has no clothes? Especially when China additionally has USD4.5 Trillion of other liquid “financial” reserves?

      • Chinese holding of gold [controlled by the elites in the Party; some of which are probably smuggling some out of the country], does not equal their currency being backed by gold.

  6. I think many are missing the point that China has a one-time opportunity to come clean when CNY joins the SDR next Month. No guarantee that they will take it but in a Global reset, it would be in China’s own best interests to apply maximum leverage because such opportunities don’t coma along every day/

    And if you want to discuss the amount of Gold in Chinese private hands, that is not the same issue and, of course, China as a Nation including its people owns FAR more Gold than any other, some of it held offshore.

    But that is NOT the issue, we issue here is OFFICIAL montery Gold. China has to date declared less that 2K Tonnes at PBOC but, of course, all the major Banks in China are State-owned so it is widely believed that China has been hiding Official Gold at the State Bank level. So, all China has to do to take advantage of the reset is to ask the IMF “Would you like us to include the Gold reserves held by State Banks in our declaration of total Official Gold? Innocent enough question……

  7. Maybe the chinese have effectively written off the value of much of their holdings of U.S. treasuries and are so sick to death of U.S. saber rattling and our insane foreign policy in general that they would take the opportunity to topple the U.S. in a relatively blameless fashion before the U.S. goes and does something crazy like starting a war.

    • The chinese will do everything they can to save the western capitalism as they know the risks involved if it had to explode.
      US will never begin a war with china or especially russia as it is still not the number one competitor : it is europe and japan.
      Putin is a target just to prevent europe to expand its influence sphere into these vast and rich territories.
      China will be the next target but in many years if it had not been infiltrated and dismissed by then.
      India is even farther, juts a bunch of mental slaves, they will be bought with a few billions as ususal.

  8. silverfreaky | August 30, 2016 at 8:46 pm |

    But when Tom Cloud says that the other states dumb US-Bonds, when the chinese reveal their true gold amount, it means they lose value.
    China as a big holder of us-debts would decrease their own value from this bonds.

    The number of the chinese US-debts is so high that i don’t understand this logic.More logic is to transmit slowly us-debt’s in real value.

    When china thinks that the US-Dollar collapses in the near future they would have sell more US-Bonds.

    But maybe i miss some point?

    • That is precisely why China has been reducing its Treasury reserves and buying Gold. Two problems, first China manufactures for the world and there is a constant strean of Forex coming in. Second, China doesn’t want to get blamed for a Global financial crash by suddenly dumping all its UST’s. They have deided, therefore, just to prevent any further increase in UST holdings whilst maximising Gold reserves and accepting that when TSHTF they will inevitably take a hit on a Trillion or so of UST’s. After the reset, either a Gold trade note or better-weighted SDR (Possibly INVLUDING a Gold component) will replace USD going forward. It is no coincidence that China’s tarde with other important trade partners (Russia for instance) is already denominated in CNY/RUB and that Russia’s energy trade with Europe is now denominated in RUB. The new Asian Banks AIIB etc) will feature resevres in Gold and transactions in CNY not USD. Then of course there is the new CIPS International Bank payments system, denominated in CNY being put in place.
      The rest of the world is sick and tired of being bullied by the US using the USD and the US Banking system as a big stick to apply sanctions as it sees fit. An exit mechanism is being slowly but methodically. put in place.

  9. silverfreaky | August 30, 2016 at 9:40 pm |

    Sorry what does this sentence mean?

    They have deided, therefore, just to prevent any further increase in UST holdings whilst maximising Gold reserves and accepting that when TSHTF they will inevitably take a hit on a Trillion or so of UST’s.

    I don’t understand TSHTF.

    • OK so when The Shit Hits The Fan, China has minimised its UST losses but, as a leasser of several evils, has accepted that it will lose on its existing UST’s. Therefore, it is NOT increasing UST holdings and is buying more Gold.

  10. Comments here postulate what the Eastern world may do economically or militarily.

    Maybe they mostly want to be at peace with the Western aggressive stance rather than challenge it.

    Some of you may not have read much on The Silk Road, and might find such articles interesting. Western MSM is largely ignoring the story; to do so wouldn’t fit with the narrative of the U.S. being the most powerful entity in the world. An alliance of Russia & China, and a few other countries in their own military and economic interests is what is coming. Not just banks…or can we get SDR’s please?

    http://sputniknews.com/analysis/20150203/1017731544.html

    http://sputniknews.com/politics/20160827/1044693862/china-russia-india-silk-road.html

    • Silk road is just a bunch of third world zones with no roads, no ports, no electricity, nothing.
      At the second the west decide to stop to sell them our technologies, they will go back to the “stone age”.
      china will try to have a bigger stake of the pie from the inside as they cannot do otherwise as
      1) they have no balls
      2) the odds to win against ther west is very low

      chinese elites will just become even powerful and richier while the 1 billion+ slaves will work and repeat the bill hotler’s BS about the “hard work”…pathetic !

  11. all BS aside—-Who cares if China has 50x as much gold as the USA?? There is not one person reading this blog who can tell me how much gold the USA has. We more than likely only have only 1 ton in Ft Knox. IF China has 50 ton, they have 50x more than us. TOTAL BS. Not worth talking about. Only thing important here is how much do YOU have in PM?

  12. silverfreaky | August 31, 2016 at 11:15 am |

    Maybe the biggest Miner Crash i ever saw.Hui from 285 to 222.It’s obvious, in a zero interest phase they can do what ever they want at the market.

    And no end in sight.Unbelievable.

  13. This is unlikely to happen in the foreseeable future. China has no reason to do that as it would not only lead to market turmoil. It would also strengthen the Yüan and it would massively lift the Gold price. China has no interest in a strong Yüan as they want to push their exports. A defecto “Gold backed” Yüan would turn the world upside down. China is likely going to continue to accumulate Gold at these low levels. They may even be part of the manipulation in favor of their own benefit.

    Nevertheless. The game will not continue for ever, so the day for the currnecy reset is in the cards. China will then reveal what they really hold, but unlikely before that day.

    • “…..China will then reveal what they really hold, but unlikely before that day.”

      After upper-escelon elites in the government have smuggle as much gold as they can out of the country for their enjoyment & retirement…in another country.

  14. Today the HUI turns.A strong character test for shareholders of miner companys.25% down in a relative short time.

    Hopefully we go to higher Highs.I’am optimistic.

  15. Here’s an example of a gold etf (Xetra gold), sold to the public as ‘physically backed’:

    https://blog.veritaseum.com/index.php/current-analysis/1-blog/195-veritaseum-knowledge-exposes-frightening-counterparty-risk-at-deutsche-bank-for-gold-investors

    Picked it up through a post from Reggie Middleton on Zerohedge.

    Backed by phyz my *ss.

  16. The FED-metod is clear.They avoid to give a clear direction.That’s part of the game.
    The unemployment rate is not as good as they want us to believe.So each month they told us always something different.I predict you in the next month it’s better as they thought.

    When more and more money and so with more debts is in the system you must avoid that the herd runs in one direction.

  17. https://traderdan.com/?p=13514

    When you want an objective view to silver anf gold i recommand traderdan.

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