This Is The Most Important Event for Gold in 50 Years
The comments below are an edited and abridged synopsis of an article by King World News
As far as the Middle East is concerned, the West is all-in on climate change and doing away with fossil fuels. All Middle Eastern oil and gas exporters need to secure new major markets in Asia. Qatar, for instance, has announced a 27-year natural gas supply deal with China.
Saudi Arabia intends to join BRICS; it is turning away from the West and the petrodollar. The agreement between the US and Saudi Arabia in 1973, which led to the creation of the petrodollar, was the greatest geopolitical development of the 1970s, perhaps more important for the dollar than the abandonment of Bretton Woods. The petrodollar has run the world ever since. The importance of ending the petrodollar regime cannot be underestimated.
The Saudis have indicated that instead of taking dollars for oil, they will accept other Asian currencies. They may be waiting for details of Sergey Glazyev’s new Eurasian Economic Union Trade Settlement (EEUTS) currency, and they may influence its construction.
The Saudis are supplying oil to China, and may be taking yuan as payment. They will likely turn that into gold while they wait for the EEUTS currency. Exchanging yuan for gold would be consistent with the temporary arrangement ahead of Glazyev’s new currency becoming available. There may not be sufficient physical gold to cover the Saudis’ oil exports to China, India and elsewhere in Asia, so this new currency will be needed.
This adds up to Saudi Arabia and others selling oil for gold instead of oil for dollars. The new trade currency will almost certainly be gold-based. Note that Glazyev is also behind the proposed Moscow Gold Exchange. If that happens, the dollar is toast and we can only guess what that will do for gold.