China and Russia Plan To Set New Gold Price Based On Physical TradingLCR Coin, Inc.
Brazil, Russia, India, China and South Africa, (BRICS), are the largest consumers and producers of gold. This group of nations will likely create a new global market based on real physical trading and in turn much more accurately reflect the true price of gold.
Currently the price of gold is established in two markets, the London (OTC) Market and New York, home of COMEX Futures. The problem with these two markets establishing a true gold price is they are trading synthetic derivatives, unallocated paper gold that has little to do with the real price of gold.
Meanwhile Russia continues to aggressively stockpile gold and China continues with its plan using the newly created Shanghai Gold Exchange to siphon physical gold off the global stage and sock it away in China. All the real physical gold that enters China will never come out. It’s against the law to export gold out of China. We are watching real wealth move from west to east.
China, Russia and all the BRICS nations seem to be preparing a new financial platform not connected to paper gold or US Dollars. This could explosive for gold on the upside.