Two interesting, but related, stories came to my attention today. The first link below reports that “Hong Kong is pulling all of its gold holdings from depositories in London,” and is moving its gold to a new depository facility in Hong Kong. At first blush, this seems to indicate that Hong Kong has lost confidence in Great Britain’s ability to secure its gold, but something much more important than that is at stake. Hong Kong is, according to this report, intent on becoming “a hub where metal could be traded for the region” and where metal could be stored “for local and overseas government institutions” (emphasis added). The Hong Kong Mercantile Exchange has reportedly “signed an agreement to use the [new] depository for its physical settlement and storage needs.”
There are even bigger plans for this gold facility in Hong Kong. There will be an effort “to convince Asian central banks to transfer their gold reserves to the Hong Kong facility,” and additional efforts will be made to attract the gold belonging to “commodity exchanges, banks, precious-metal refiners and ETF providers.” If other Asian banks deposit their gold in the Hong Kong facility, they will be in the same position as American multinational corporations, who placed their production facilities in China. All gold placed in the Hong Kong storage facility will ultimately be controlled by China, which has sovereignty over Hong Kong.
One can find numerous stories via a websearch that China is rapidly building its gold reserves and making major efforts to develop and control mining activities and the production of all kinds of commodities around the world. The second link reports that China is now openly encouraging its entire population to buy gold and silver. China has reportedly “stunned the world” by increasing its official gold reserves by 76% in just one year. [I wonder what its “unofficial” gold reserves are?] China has also become the foremost gold producing nation in the world. The second link states China has two goals in its gold-buying spree: (A) to get rid of surplus US dollars and (B) “having its own currency, the renminbi, replace the US dollar as the global reserve currency.” There is a third reason cited later in the second link. It asserts “that suppressing the price of gold has been a principal strategy by Western bankers to keep the dollar propped up,” and China seems intent on overthrowing that strategy. The more gold that China possesses, the greater power China will have to wrest control of the pricing of gold, silver and all other commodities from the English and Americans and transfer that control to China. That I think is the ultimate goal.
This has biblical implications as I’ve often stressed in my blogs the importance of the prophecy in Revelation 17-18 that the modern economic/commercial/monetary system of the world will be overthrown and eventually a new “beast” system will emerge from the resultant chaos and have global domination for 42 months (Revelation 13:5). China’s move to gain the “whip hand” over the gold and commodities markets is one more way that the current global economic system of “Babylon the Great” is being steadily undermined. There is an old axiom which states that “he who has the gold makes the rules.” China intends to corner the gold market and when it does, it will make “new rules” for how gold is priced in the world.