Tom Kirkman

PetroYuan & Gold & Precious Metals, oh my!

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So it's been a week or so since I last nudged readers to   PAY   ATTENTION   to the incremental, inexorable, slow-moving financial tsunami of the PetroYuan. 

(I've been commenting about the PetroYuan for a year or so, and only recently on this new Oil Price forum.)

China is adding metals to the PetroYuan mix.  And it seems like this was also planned long ago.

One of these days, the PetroDollar monopoly is going to wake up and notice that they aren't the center of attention anymore.

Pay particular attention to the list of 5 items in the middle of this article (I didn't quote the list here, please read the whole article.)

Petroyuan is Only the Beginning, Pop Goes the Metals Market

"After successfully launching a yuan denominated gold futures contract last year, the LME is now preparing to issue a range of yuan-denominated metals futures.

... First gold trading in Yuan. Now the rest of the metals.

We’ve all been breathlessly focused on how strong the so-called ‘petroyuan’ oil futures contract has been for the Shanghai Exchange.  It has captured more than 12% of the total oil futures market in just under two months.  That’s incredible.

... The reason why the petroyuan contract was so immediately successful is because China provided traders with a direct path to convertibility into gold.  It de-risked listing because profits wouldn’t be trapped behind China’s capital controls. ..."

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10 minutes ago, Guillaume Albasini said:

A recent article from an italian economist on the Petroyuan :

Thanks for that; good article, with some real meat on it.  This Italian Economist's perspective is a bit different from either the U.S. or China perspective, and brings in quite a few related points.  Worth reading if you are paying attention to the PetroYuan chess moves.

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Italian economics perspective are always different from other european counterparts. so does their way of doing business. Good or otherwise, it depends whom you are dealing with which kind of italian... 

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