Over the weekend on Aug. 7, statistician and economist Dr. Jim Willie published new information regarding negotiations that are taking place right now between Chinese finance officials and the Bank of International Settlements (BIS). At the heart of these talks is the ending of the dollar as the medium for international trade settlement, and in using physical gold as its replacement.
While not completely confirmed, the number that Dr. Willie has been hearing for a repricing of gold to accommodate global trade settlement would be to boost the price/value to $5000 per ounce.
The Chinese finance officials and the Basel-based bank for international settlements are negotiating a global reform of all bilateral contracts. They strive to alter us dollar-based contracts, and change the contract terms to gold settlement. They are working on a global contract at the $5000 gold price in contract conversion. China represents eastern interests, while Basel represents western interests. It is not yet clear what will happen to commodity price mechanisms. - Golden Jackass via Goldseek