Analysts in Hong Kong admitted on April 20 that the implementation of the new Chinese gold fix is just the first step in a multi-year plan to move the Far Eastern economy completely away from the dollar, and back to a gold backed monetary system.
The new gold pricing mechanism that started on April 19 at the Shanghai Gold Exchange will allow China to eventually move all price discovery away from London and the U.S., and then use their authority to bring gold back into the trade and currencies over the next few years.
China's shift to an official local-currency-based gold fixing is "the culmination of a two-year plan to move away from a US-centric monetary system," according to Bocom strategist Hao Hong. In an insightfully honest Bloomberg TV interview, Hong admits that "by trading physical gold in renminbi, China is slowly chipping away at the dominance of US dollars." Gold, silver, and petroleum "are the three USD-based commodites that China wants most control of" according to Hong but "gold in particular is one of the commodities that China is hoarding very hard." - Zerohedge