GGPChat

Some of you may remember me 2 years ago banging on LSE - quite randomly at the time - that I'd heard some high level intel that China was planning a new currency and that it would be backed with gold and was designed to challenge the US dollar as the world's reserve currency.

Well today they finally went public ….apparently all will be revealed in August 2023 at the BRICS South Africa meeting where apparently 41 Nations are seeking to come together and join ...

And unsurprisingly - this new BRICS currency WAS confirmed today to be Gold backed : https://twitter.com/wmiddelkoop/status/ ... 3577744385 ... The story was nicely broken by Willem.

Now many may just say meh….! Makes no difference to GGP... ITSOUTHERE on LSE for a start... WELL well and truly Wrong imo.

Frankly, whoever you are... It's hard not to see how this development doesn’t put downward pressure (real or psychological) on the US dollar… and upward pressure on gold, because if gold is worth more , then so is the new BRICS currency...

The gold maket’s reaction was initially muted although it gapped up $40 on the news (tho was later sold into.)

The extremely interesting part was the detail of what my original source told me 2 years ago …. as follows:

“The US and UK governments had been ‘War Gaming’ a gold backed Chinese currency scenario designed to challenge the US dollar as reserve currency ... The work concluded the Chinese would need gold at at least $10k per Oz for it to work.”

So how reliable was/is this intel?

Well, at the time back in May/June 2021 it appear it could be great intel (of course i was ridiculed on LSE … ) and then a few months later a similar stories started to emerge in fringe media, such as Kingsworld news who ran fairly detailed article from a guy called Sergey Glazyev and then another appeared from Rob Kiantz who’s since turned over the Perth Mint.

Attached are my original (dated) WhatsApp texts to a few GGP friends, from between May and June 21… I searched back for 'Yuan' and the original dates are clearly visible as you scroll.

In principle. This could be about to get next level … Put it this way IMO all big ‘new’ gold deposits just suddenly got a LOT more valuable. However the other side of this is increasing risk that the US government may well end up taking out Newmont as biggest producer in the world.

Obviously no one can be sure how this all lands... but $10k -$15k gold has been 'on' as it were, in the charts for a long time, according to Northstar-Badcharts but nobody knew what the trigger would be. I suppose you can argue that this could well be it. And on the flip side of $10k plus gold (maybe up to 40k gold) is that it’s also a very helpful way of cancelling out US debt - assuming they still have their gold? - as nobody really knows.

Main Street Media is of course clueless to all this... and probably won't even report it, let alone begin to figure out the implications or consequences. Eventually stories will emerge in the FT as some big splash. Basel 3 has also taken significant effect. Big banks are now holding physical allocated gold as a prime T1 reserve assets on their balance , rather than paper gold.

Now thinking ahead, and I mean it make take a good few years - but - what the hell does $10k gold do to GGP? Well IMO - how about 10-20x i mean even 100x could be on..

Just sit back and know... you are invested in something massive and safe here... yes I may be being over optimistic, production numbers, but I genuinely believe there's a real chance the entire crackle breccia system could be dropped in as economic and subsequently processed at 0.2g/t to 0.3g/t Au - so thats about 1 to 1.5billion tonnes of resources- we currently sit under 100mt .

Imo comparing Havieron to other low grade mines and considering the other possible Hav metal credits like cobalt/nickel/tin in the sulphides that low grade bulk breccia will likely be economically mined out above $2500 gold.

Capex Payback will of course be hugely reduced from 48-36 months to sub 24 months maybe even 12 months

But that current MEE - 90mt 3-4g high grade - jesus wept! - at just $2-5k gold, with an ASIC in the $650s thats crazy horse 'licence to print' money' territory ...The very large, low grade deposits 0.3 to 0.5 g/t ( ie presently marginally economic or sub economic deposits ), is what are going to make the most ludicrous amounts of money in a much higher gold price environment.

And remember a Speedy observes, all the (mined) gold in the world isn't enough to back a global reserve currency 1:1. Not with the amount of trade china engages in... so unless the price goes to $40-50k/oz. So it will likely be a fractional reserve backing. But either way $5000 - $10000 or $40,000 the gold price looks primed now to move higher. (And if its 1:10 backing thats still in excess of $5k/oz. 1:5 being $10k/ oz)

Time will tell if i'm correct but I'd much rather be in Australia as a jurisdiction, than Canada or the US or Africa /South America - given these major geopolitical events. This is potentially now entering the realm of where big gold mines become sequestered by foreign governments. Mexican government just sequestered its lithium mines :

https://www.reuters.com/world/americas/ ... 023-02-19/.

The world is changing fast… and probably much faster than most think. It’s actually a pretty exciting time to be alive - as America enters hard and fast into what some call, The Fourth Turning.

Not Advice and DYOR.

Not a expert by any means but Newmont taking over Newcrest look to me how the Yanks can get access to Gold and Copper by using there easy printing dollars that are losing purchasing power to gain access to the Gold they are going to need to keep up the fiat ponzi scheme they created.
Thought Australians would have spotted this selling of the Golden goose is not in Australias interest long term.

Just look at the scale of that >0.5g/t AU shell the blissy blue one - al that lovely cemented breccia ... @boom!

And just remember all those whopping holes omitted from our MRE like HAD 016 in this red zone: https://ibb.co/hfHGJCk

crikey Hydro!

imagine that scenario, the U.S uses all the gold in it’s reserves to pay off its debt if gold hits $10k oz.

that’ll surely clear the debt and get the U.S out of jail. But as a consequence what else would the U.S have as a backstop? i doubt we’d find that out in our lifetime.

fascinating times ahead both GGP & Geopolitical.

Thanks for the thought provoking posts

Gold backed Digital Yuan to use sim card as payment platform ...

THE BANK OF CHINA IS TESTING A NEW OFFLINE PAYMENT SYSTEM LINKED TO SIM CARDS

https://cointelegraph.com/news/cbdc-dig ... -sim-cards

Can you imagine - in this world we live in today - anyone in all the westernised countries - backing a chinese digital currency INSTEAD of the dollar?
And then to make it even more incredulous - believing the BRICS to be a stable platform/vehicle with which to support such a preposterous solution.
My grandchildrens great grandchildren will be saying the same thing.

Z

I think, like many commentators who deny the impact this could have, you may well be missing the point Zoros.

Nobody expects the EU to ditch the dollar...

But the Global South? - They may chose to reduce use of the US Dollar.

For the avoidance of Doubt : Global South represents 85 percent of the world's population (and 39 percent of global GDP and growing...)

These are developing countries, with genuinely growing economies, and growing middle class and disposable wealth.

85% of the world's population... and almost 40% of Global GDP - that's potentially a big hit to the US dollar.

The EU may have to reduce dollars to increase Digital Yuan in order to trade for Oil and Goods with China and other producers....

The possibility is the EU will be required to use the currency of producers' choice. Or suddenly will we not need oil...?

The Chinese want to support (fix) their currency. Gold is another way to do that.

We may have to partially 'fall into line' if we want to do business.

Crunch time!! Bang on long Term Tail support... Do we get a USD bounce here... or not?

Finally, the dollar has dropped below 100! Hasn’t been this low since April 2022, gold should keep rising if that keeps dropping