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May 25, 2018 · 1 min read

China adds metals to the PetroYuan mix

Tom KirkmanIndependent Project Manager

So it’s been a week or so since I last nudged readers to PAY ATTENTION to the incremental, inexorable, slow-moving financial tsunami of the PetroYuan.

China is adding metals to the PetroYuan mix. And it seems like this was also planned long ago.

One of these days, the PetroDollar monopoly is going to wake up and notice that they aren’t the center of attention anymore.

Pay particular attention to the list of 5 items in the middle of this article (I didn’t quote the list here, too long).
==================================

“After successfully launching a yuan-denominated gold futures contract last year, the LME is now preparing to issue a range of yuan-denominated metals futures.

… First gold trading in Yuan. Now the rest of the metals.

We’ve all been breathlessly focused on how strong the so-called ‘petroyuan’ oil futures contract has been for the Shanghai Exchange. It has captured more than 12% of the total oil futures market in just under two months. That’s incredible.

… The reason why the petroyuan contract was so immediately successful is because China provided traders with a direct path to convertibility into gold. It de-risked listing because profits wouldn’t be trapped behind China’s capital controls. …”

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FROM THE THREAD

Tom's notes 5

  1. Tom Kirkman

    Here's another article which was brought to my attention. This Italian Economist's perspective is a bit different from either the U.S. or China perspective, and brings in quite a few related points.

    Worth reading if you are paying attention to the PetroYuan chess moves.

    https://moderndiplomacy.eu/2018/05/23/the-petroyuan/

  2. Tom Kirkman

    Thanks Chong, happy you enjoyed the article.

    There are so many international repercussions to the rise of the PetroYuan.

    For example, it may turn into quite a spectacle to watch China diplomatically arm twist Saudi Arabia in the near future about their Aramco IPO next year.

    Money talks. So does gold. And a gold-backed PetroYuan is not something to ignore. Are diamonds next on the agenda?

    PetroYuan & Gold & Precious Metals, oh my!

  3. Tom Kirkman

    Chong Keng, yep, the world is constantly changing, significantly so. China and Russia are working together for economic and energy interests. New economic alliances are being made globally, toward a far more multi-polar world.

    Iran, Saudi Arabia, Syria, Turkey, USA, Venezuela, Mexico, EU bloc, Nigeria, Japan, ... the list of nations that will likely be impacted by the rise of the gold-backed PetroYuan just keeps increasing.

  4. Tom Kirkman

    Eeep.... I hadn't thought of that.

  5. Tom Kirkman

    The PetroYuan is moving forward much faster than I expected. Brace yourself, might be a bumpy ride ahead.

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