Hong Kong Just Launched a Gold System That Could Reprice Gold

Gold and silver lovers, today is a big day, because it marks the launch of something that is going to help end a paper market manipulation monopoly, that's a mouthful, that the West has had over physical gold and silver prices for years. And yes, I am talking about the long-awaited gold clearing and settlement system coming out of Hong Kong, out of the Hong Kong exchanges and clearing. Now, in case you're thinking this is just a Hong Kong story, think again, this impacts everyone globally, whether you already own gold and silver, you're thinking about buying or you save in dollars, as they are aiming to be the international price setter for the precious metal. Now, this is a big deal and whether or not you've been following everything that's been going on, I've been reporting on this for a while, do not worry, because we're going to break down exactly what today's launch means, how it impacts you, and of course, what's coming next. Now, for decades, if you wanted to trade large quantities of gold or silver, you really had to do it through New York or London, which gave the West a monopoly on the ability to control spot price. Now, when we talk about spot price manipulation or suppression of physical gold and silver, what it really comes down to is a massive divergence between the amount of physical gold and silver versus the amount of paper gold and silver issued. Now, how they would do this is a process called rehypothecation, which essentially means that you could create many paper claims on the same amount of physical gold or silver. Of course, this made it look like the supply versus demand was completely out of whack, that there was far more supply than there actually was in reality, hence lowering or suppressing the spot price. All of this to say that billions of dollars of contracts right now change hands without real physical gold or silver ever actually being delivered, but this is where Asia comes in. Now, with the HKEX linking this gold settlement and clearing system to their futures, it could be expected that when contracts expire, participants will expect real metals to be cleared. Now, this limits a bank's ability to short the naked contracts or sell silver or gold that they don't physically hold. This is going to be a massive game changer for the spot price of both gold and silver because over time, the East is going to create more pressure on the West to keep up with what inevitably will be higher spot prices. In fact, right now, there often is already a divergence where if you look at what's going on over in Asian countries versus Western countries spot price, you're going to see that they're often already trading at a premium. Why is that? Because there's more of a tie to the physical. This is also going to help with all the short selling. Now, banks have been notorious for spoofing or dropping these large amounts of paper contracts in the dead of the night. When nothing can happen, it will crash prices. Okay, I'm not making this up. In fact, if you look it up, you can find that banks have already been fined for this, gotten in trouble for it. Not nearly enough, not every time it happens. It should be way more. It should stop. It's still happening today. But again, look it up. I'm not making this up. But now, what would happen? Instead of just having a Western desks that are in charge of all of this and nothing really anyone can do because it's all based on one time zone. Well, now, you could have arbitrage traders come in and grab those contracts and then exchange them for the real physical gold or silver. Well, what's that going to do? It's going to punish the short sellers. It's going to help prevent this from happening again and again. This is something that if you have been a long time gold or silver holder, you are probably familiar with. If you are not familiar with what I'm talking about, you've saved yourself a lot of heartache and headache, okay? Now, for me personally, if you've watched this channel for any amount of time, you know I try not to get too tied up on the spot price because ultimately for me, I am very, very confident. I've studied currency resets throughout history. One thing we know for sure is that the dollar, right, the value of this piece of paper is always going to be worth less tomorrow than it is today and ultimately as we careen towards a new monetary system where the dollar is not at the center of it, we could see inflation turn to hyperinflation and a currency reset where they come out and revalue or devalue the official value of the dollar to something significantly less. During currency resets throughout history, that's when you always want to make sure you have your physical gold and silver. So today's spot price for me does not matter as much because I own both physical gold and silver and I'm glad I do and I don't really sweat it. The price goes down a little, goes up a little because ultimately I know what's coming next. So do central banks, which is why they're buying it massive amounts of record quantities in terms of physical gold, right? Now, here's the thing though. The reason why this is so important, number one, is because I just hate those crooks. I hate the criminal activity. I hate the big banks winning, right, and pulling a fast one over everyone else. It's incredibly frustrating when we all know that the spot price of gold and silver should be much higher, but should doesn't really matter, right, when the big guys are out there able to stick it to the little guys. Well, for once, I'm feeling a lot of hope around what this could mean for all of us coming next, right? Do I think it's going to stop the manipulation entirely? No. I think, like I said, they'll find another way, but do I think it is a huge step forward in the right direction? Yes, absolutely, and Hong Kong isn't coming to play, you guys. They are serious. They mean serious business. Yesterday, they announced, by they, I mean the HKEX, right, and Hong Kong announced they would waive fees for its U.S. dollar gold futures for a year. Now, the turnout was immediate, breaking their record amount of one-day futures trading done by double, okay, following this announcement. They are going to do whatever it takes to become, as they said they want to be, the international price setter for precious metals. Now, I talked earlier about how this would impact not only gold and silver, but the dollar as well. I have come on this channel, and I have talked about central banks buying physical gold, but it's not just that they're stockpiling gold, okay? We are seeing a return to real money, and in order to do that the same way here in the U.S., if there was ever to be a revaluation, they'd have to audit Fort Knox, right, and prove you have the gold. Well, here, as the world prepares for a return to gold at the center of the monetary system, right, it's not just the stockpiling of the gold, it's the infrastructure around it that is playing a huge role, and this is all happening in tandem, and one thing that's really interesting about this, too, is that it is a sanction-exempt, okay, a sanction-exempt gold clearing and settlement system. What I mean by that is that it is outside of Western control, and I'm talking about the U.S. I'm talking about how, you know, when Russia invaded Ukraine, the U.S. was able to basically cut Russia off from the rest of the world by blocking their access to the SWIFT payment system, right, as well as freezing and seizing their reserves, but this operates on its own blockchain technology, so the U.S. can't stop it even if they wanted to, right? And what's very interesting about this, as well, is Hong Kong is just one piece of the puzzle, okay? They have been very busy, the BRICS nations have been busy coming together. I've talked about the Gold Corridor, or a network of gold settlement vaults that they are building in Asia, and one that they're creating right now lives in Saudi Arabia. Why do you think that is? To settle oil in gold, okay? When I tell you guys that gold is going to be the return to center of the monetary system, okay? I'm not just making that up. All the pieces of the puzzle are falling into place, and like I said at the start of this video, it doesn't mean, right, that the dollar is going kaput tomorrow, that it will happen overnight. The signs are there if you're paying attention, all right? This is why it is so important to make sure that you have your gold and silver now, because what do we think is going to happen to prices, right, the launches today? What do we think is going to happen to prices as more and more physical gold and silver, right, is settled, okay? It's going to be huge, in my opinion, and again, I'm not trying to sit here and predict where prices are going, but if you've been debating, you know, protecting your wealth with gold and silver, or you have some but you want to make sure you have the right strategy for what's coming next, now is the time to talk to a real person with real answers who understands not only what's happening today, but what's coming tomorrow. So if you have any of those questions, or you are that person out there watching who has been thinking about making the call but wasn't sure how to do so, call us at the number below. Give us a call. We are here to help the same way we've been helping people for the last 30 years, all right? There's also a Calendly link down in the description. You can always set up a time to talk to us. Whatever works best for you, but we are here to help you, and I can't tell you the peace of mind I have knowing that I'm protected with my physical gold and silver outside of the system. So lots going on here. Again, launching today, but much more to come, I'm sure, in the future that I'll be reporting on. If this was helpful, please share with friends, family, or any of your loved ones. Like I said, it's a good day for gold and silver lovers out there, and as always, thank you so much for being here. I'm Taylor Kenney with ITM Trading, your trusted source for all things gold, silver, and lifelong wealth protection. Until next time.