On May 4, the US financial website Zerohedge quoted economists as saying that as Russia's foreign exchange reserves are restricted from the US dollar, it means that the US dollar may be taken away when it is most needed. The dominance of the dollar is the root cause of the global financial crisis. It is worth noting that while announcing a 0.5% interest rate hike on May 4, the Fed also said that it would start to shrink its balance sheet from June, and by September the Fed would reduce its holdings by $95 billion per month ($60 billion in U.S. Treasuries and $35 billion in MBS) Some analysts expect that the Fed's balance sheet may eventually shrink by 60% in the next 3 years, and may eventually accumulate a sell-off of $5 trillion, including US Treasuries, and may eventually drop to about $4 trillion.
Although the Fed started this trip to raise interest rates and shrink the balance sheet in the name of suppressing high inflation, from another perspective, as shown in the chart below, while the purchasing power of the US dollar continues to decline, the Fed, as a joint institution of many US banks, seems to be becoming more and more frosty about the US dollar and no longer optimistic about the future of the US dollar. This is tantamount to the first thing that the dollar is rejected by its own family. According to the latest IMF data, the dollar's share of global reserves has fallen from 80% in the 1970s to 58% today. Meanwhile, the second thing that Americans seem to be cold to the dollar in the U.S. market happened.
Reuters reported a week ago that Switzerland, the world's largest gold transit and refining hub, saw a surge in gold exports to the United States in March. Swiss gold shipments to the U.S. soared to their highest level since May 2020 as Americans hoarded large amounts of physical gold, including gold bars, according to Swiss customs data. At the same time, Swiss gold exports to the UK also increased.
According to the latest data from the U.S. Mint, in the first quarter of this year, the agency sold 984,300 ounces of gold coins in the United States, which has reached 80% of the 1.2 million ounces sold in 2021. Another report released by the World Gold Council shows that Americans are actively buying and hoarding gold and coin coins, with total demand for U.S. bars and coins expected to reach 4.25 million ounces in 2022.
Not only that, But Jason Cozens, founder and CEO of Gold Trading and Investing Glint, said a few days ago that as of the first quarter, about half of the 105,000 global customers who bought Swiss gold through the agency were from the United States, and the number of these American gold buyers increased by 500% compared to the fourth quarter of last year. This also confirms that Reuters mentioned earlier that Americans are actively hoarding gold, and even increasing their holdings of gold at a rate of up to 5 times. For the dollar reserve currency, this is tantamount to the feeling of being disliked by their own family, which is the third thing that Americans seem to have become cold to the dollar.
Similarly, the fourth thing that Americans seem to be cold to the dollar has also happened, with Reuters news a week ago saying that in the United States, people have started buying goods using gold-injected currencies. Steve Allred, a business owner in Utah, is concerned about the decline in the purchasing power of the dollar. Like many investors, he has bought gold. About three months ago, Allred began accepting Goldbacks, a gold-injected currency, at his store. And it doesn't mean to end there.
According to a proposal (HB2123) made by the US state of Kansas three weeks ago, the state will recognize gold and silver as legal tender, making gold and silver comparable to the US dollar in this state and allowing commodity exchange. Meanwhile, Idaho, Wisconsin, Tennessee, Arizona, Maine and Virginia are also legislating to make gold and silver a legal currency on a par with the dollar. It's also becoming the fifth thing Americans seem to be cold to the dollar.
Not only that, but U.S. Rep. Alex Mooney earlier proposed to the U.S. Treasury to review the Transparency of Gold Reserves Act (HR2559), calling for an open and transparent audit of gold, followed by a new proposal to restore the U.S. monetary system to the gold standard and inject the value of gold into the dollar's issuance system. This is undoubtedly the sixth thing that the dollar was rejected by the Americans. In this regard, Mooney believes that the gold standard, relative to the unbridled wild horse of the dollar, will change the current HABIT OF the US economy to rely heavily on printing money and debt, and for every American, it avoids the unfair monetary phenomena created by those closest to the dollar printing machine, and can also effectively curb inflation in the US market.
In fact, despite having the supreme initiative over the dollar, the Fed has also been favoring gold reserves. We looked up testimony from former Fed Chairman Alan Greenspan a few weeks ago, and he said at the time that "gold is another commodity whose derivatives are often traded over the counter, and the Fed stands ready to increase the amount of gold leased if prices rise." This means that the Fed indirectly acknowledges its misappropriation and leases international gold for profit. The US financial website ZeroHedge said in a follow-up a week ago that the Fed has been selling gold for nearly 22 years, while most of the gold exported is shipped to markets such as Switzerland, the United Kingdom and Asia.
Swiss gold dealers mentioned in an interview with BWC Chinese network reporter on May 5 that in the context of the Federal Reserve has clearly entered a tightening cycle, it may become more sensitive and important to the gold previously deposited by many central banks around the world. Because there have been cases of the Fed preventing Germany from shipping back the remaining gold, the process of returning gold from overseas vaults such as the Federal Reserves may accelerate as the dollar reserves weaken and Americans begin to almost dislike the dollar.
A latest report linked to the Federal Reserve provided by Swiss gold dealers to BWC Chinese network on May 2 shows that as of the end of April, a cumulative total of up to 1300 tons of gold has been shipped out of the United States by many central banks, and the gold currently kept by the Fed for global central banks has dropped to about 5700 tons compared with the previous high of 7000 tons. So far, at least 13 countries in France, Germany, Italy, Venezuela, the Netherlands, Switzerland, Austria, Belgium, Turkey, Australia, Hungary, Poland, slovakia and so on have announced that they have withdrawn some gold from overseas vaults such as the Federal Reserve and the Bank of England or plan to withdraw gold reserves for their own safekeeping.
Taking France as an example, the news from the US financial website Zerohedge a week ago shows that France has withdrawn all its gold reserves from overseas vaults such as the Federal Reserve. Our search for the bank's website shows that france's gold reserves are currently stored in vaults in Paris. However, the Bank of France is very secretive about when and in what form the gold will be shipped back.
Swiss gold dealers told us that the existence of gold ownership by the Federal Reserve and the Bank of England is very clear, and at any time, there is no right to prevent depositors from retrieving their gold, and eventually they need to return it. Otherwise, the credit of the dollar's reserve status will face collapse. According to the latest report released by the World Gold Council on May 1, the total amount of gold reserves owned by the world's top ten gold reserve countries in their respective foreign exchange reserves accounts for a large gap, but according to the comprehensive analysis of a number of US media, the gold reserves in some markets may be much more than the public.
For example, according to the US financial website Silverdoctor reported on May 3, Alasdair Macleod, head of goldmoney research, believes that Russia's gold reserves may be far more than the official announcement of 2298.5 tons. It is worth mentioning that according to the Russian media RT reported on April 26, Russia is carrying out a project to establish a double-ring currency and financial system in the country, based on the economic restructuring of digital technology. The project involves the supply of gold to the Russian currency and a range of commodities representing the value of the currency.
The analysis believes that according to this statement of the Russian media, Russia seems to be close to returning to the monetary state of the gold standard, and it is likely to be born of gold rubles. This is also the result of the dollar's continuous opening of financial restrictions. In response, BullionStar's precious metals analyst Ronan Manly said that the gold-backed ruble could be a game-changer, meaning that linking currencies to gold and energy is a paradigm shift in global finance and economics. This means that global currencies may bid farewell to the anchor of the dollar's single currency.
It is worth mentioning that Egvon has successfully predicted quantitative easing and historical volatility. Grayers analyzed a few weeks ago that it found that many Chinese buyers continued to buy large amounts of gold in the US and UK markets. Our inquiry into the World Gold Council, citing customs data, also found that China imported 67 tonnes of gold in February, down 41% month-on-month. In 2021, China imported 818 tons of gold, 36% higher than in 2020 and close to the 2019 level. Adding up this series of data, it can be seen that in the 38 months from 2019 to February this year, at least about 2300 tons of gold have been transported to the Chinese market in batches from Europe and the United States.
The US media Silverdoctor also said on May 3 that Alasdair Macleod believes that China has actually accumulated more than 20,000 tons of gold according to relevant analysis, which is much more than we know. In addition, Alasdale McLeod, the first person in international gold analysis, also analyzed that China accumulated about 25,000 tons of gold between 1982 and 2003, and it is likely to exceed 31,000 tons of gold at present.
Zerohedge earlier quoted a letter from Simon Hunt's CEO as saying that China actually owns 30,000 tonnes of gold, which seems illustrative by The love of China's aunt for gold over the past few years. (End)