China is taking the next big step towards dethroning the dollar as #1 global reserve currency. And this strategy could send gold soaring…
For decades, countries have paid for oil with the petrodollar, which supports the U.S. dollar’s value and fuels U.S. government deficit spending.
But now, with the advent of the “petroyuan”, China is upsetting this system. It started in June, when Beijing established a direct-trade relationship with Russia allowing for oil purchases to be made in yuan.
Not long after, China turned its sights to Saudi Arabia. But the discussion didn’t flow as smoothly as it did with Russia. That’s why China is taking things one step further…
Gold Solves Petroyuan Concerns
China found that some nations don’t want to accept the yuan in exchange for oil, because it is still too illiquid and unestablished. But China has an ingenious solution: Simply back the petroyuan with gold.
Gold holds a significant draw for exporters over the yuan alone, so these new gold-backed contracts are opening the door for the petrodollar to be overturned… permanently.
Grant Williams, an adviser to Vulpes Investment Management, puts it simply: “It’s a strategic move swapping oil for gold, rather than for U.S. Treasuries, which can be printed out of thin air.”
How to Leverage China’s Global Reset
Depending on how your savings are invested, China’s new gold-backed petroyuan futures contracts could either be good news or bad news.
If your savings are heavily backed in dollars, consider this a huge warning. As the petrodollar crumbles, so may the value of the USD.
But, there’s one asset that could benefit handsomely: physical gold.
For the first time since our nation abandoned the gold standard, physical gold is being reintroduced to the global monetary system in a major way.
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Plus, this 16-page “insider’s” guide reveals the little-known IRS Tax Law to move your IRA of 401(k) into an IRA backed by physical precious metals – without paying any taxes on the transfer.
It’s an excellent option for anyone who wants to take advantage of this opportunity with any savings in their retirement account.
But remember, you must act soon. Once China’s gold-backed petroyuan gains real traction, it may be too late to take advantage of this opportunity. To get started, click here to get this free info kit on gold.