Gold-Backed Ruble or Yuan?

18 May

Jim Rickards disputes predictions that China and/or Russia may establish a gold-backed currency in the near future.  I’m not suggesting that Rickards is definitely right, but he makes logical and persuasive arguments that may be correct.

For example, other analysts have concluded that China imported over 10,000 tons of gold during the past decade.  Based on that 10,000 ton estimate, some analysts believe China has enough gold to back their yuan currency with gold.  They’re expecting the imminent appearance of a gold-backed yuan.

Rickards agrees that China has probably imported more than 10,000 tons of gold.  However, he also alleges that as only 30% of that gold went into government treasuries while the remaining 70% went into private hands.  He concludes that China’s government may have only about 4,000 tons of gold–which is not enough to support a gold-backed yuan. He therefore denies that a gold-based yuan will be issued in the near future.

It may be that the Chinese government received only 30% of the 10,000 tons of gold imported into China–but I’m not convinced.  If 70% of those 10,000 tons were held by private individuals, why haven’t any of those private individuals tried to sell their gold to foreign buyers?  If 10,000 tons were imported, I’d expect the Chinese government to acquire the lion’s share–say, 90%–enough to issue a gold-backed yuan.   Nevertheless, Rickards makes an interesting and persuasive argument to the contrary.

video   00:07:06


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6 responses to “Gold-Backed Ruble or Yuan?

  1. Ralph P. Torello

    May 18, 2016 at 5:29 PM

    Email Headline: **THAT** is the stuff that should make you THINK, Al Adask

    Do you think the United States “engages in equal or fair trade?” If you accept my point that 100% of manufactured (sometimes called ‘durable’) goods available at retail stores are made in Pacific Rim countries – and when I say that – I mean everything at Micro-Center, Best Buy, Costco, Target, Wal-Mart, Dollar-Tree, 99-cents-only is MADE IN CHINA…



    The real question is: Who in the United States paid for all that? The United States still makes Boeing 747’s, Ford’s, Chrysler’s & Toyota’s… But all that stuff at stores – stores whose shelves were empty 25 – 30 years ago… **Note: Anything edible – FOOD – is usually made in U.S.A. food canneries & factories are running at 500% of capacity I think.

    『美國製造』還抱括:飛機,汽車,食品 (美國達拉斯食品 - 五倍多)

    『美国制造』还包括:飞机,汽车,食品 (美国达拉斯食品 - 五倍多)

    Who paid for it all? Digital Dollar Bills are totally worthless to factory workers & The Communist Party over in Shanghai and factories in Anhui, Sichuan, and Guangdong province…

    Do you really think they just “exported” Gold Bullion? I doubt the US Government even would have permitted that…

    The answer *really* is (I think, suspect, but cannot prove) .. NOBODY… Sam Walton & Port Authority (DHS?) sells us stuff that it never paid a penny for.. And we are kept drug-slave-hostages by the U.S. government because of the GREED…

    • tommy glen

      May 18, 2016 at 9:53 PM

      whoa there Ralph. that’s either genius or insane, buddy, and i’m not smart enough to know which. i hope some else is.

  2. palani

    May 20, 2016 at 9:43 AM

    In the Land of Oz (aka “The Land of Fruits and Nuts” ) gold COLORED becomes gold.

    Tungsten: The NEW gold standard. Same atomic weight. Color it gold and it becomes suddenly perceived as valuable.

    Follow the yellow brick road. It leads to Emerald City (aka “Greenback City”). Illusion is more important than reality ….

    Shades of Timothy Leary indeed. Hear a clue?

    Want some whiskey in your water?
    Sugar in your tea?
    What’s all these crazy questions you’re askin’ me?
    This is the craziest party that could ever be
    Don’t turn on the lights cause I don’t wanna see

    Mama told me not to come, Oh Lord
    Mama told me not to come
    “That ain’t the way to have fun, no”

    • Adask

      May 20, 2016 at 9:46 AM

      Apparently, you’ve been reading Ralph Torello’s comments.

    • palani

      May 20, 2016 at 10:44 AM

      Nope. Three Dog Night.

    • palani

      May 20, 2016 at 10:49 AM

      Oh … and I used to work for the company that made the gold colored brass material that makes up the sacagawea dollar coin. While it did not gain popularity in the U.S. about 15 million of them were sent to bail out a central america country that lost it on the currency front. The natives thought it great that the U.S. placed a likeness of them on one of its’ coins and it was (and still is) very popular.


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