This coming week could see one of the most anticipated financial events since central banks began their unprecedented policies of money expansion, stimulus, and quantitative easing six years ago. In fact, dependent upon what China chooses to announce before Sept. 30, it could also be the most important financial paradigm shift since the U.S. took the reserve currency off the gold standard in 1971, or even as big as the implementation of the original Bretton Woods monetary agreement itself.
That is because China is preparing to both enter into the elite playing field as a fully recognized global currency through their inclusion in the IMF's SDR basket, and to also report their gold reserve holdings which dependent upon how much they choose to reveal, could create a seismic event that facilitates the beginning of the end of dollar hegemony.
And with both Russia and China continuing to accumulate large amounts of gold as recently as August, expectations are that China will report a number much greater than most analysts are conceiving.
This fact is not lost on the budding partnership of Russia and China, who continue to accumulate gold at a feverish pace. Russia continued to add to their reserves in the month of August, in which they added an additional 21.77 tonnes of the yellow metal, bringing their total gold reserves to 49.1 million ounces!
In addition to this, China has also continued to move a portion of their massive fiat reserves into the more tangible form of money, gold bullion. They are continuing to accumulate gold, knowing that they are the most likely successor to the US dollar, and have the highest probability of being crowned with the "reserve currency" status.
When that day will come is anyone's best guess, but what is no secret is the fact that China is set to rock the precious metals markets in the immediate future. By the end of this month , they are expected to announce an updated estimate of their gold holdings, something that many in the financial world believe is long overdue.
The reasoning for them finally tipping their hand and showing their cards is due to the fact that they are strongly being entertained to become a key member of the highly elite global banking currency, the SDR, and this is one of the stipulations in regards to their acceptance.
The SDR is what some have called the "king" of fiat money and is a powerful currency in global settlements. This is perhaps just one more step for China in their path towards becoming the official reserve currency of the world. - Sprott Money