Gold to $20k in a few yrs.- NYSE Trader

[Recyclersteve]

https://finance.yahoo.com/quote/GLD?p=GLD

The above link won't last too long so I've captured what was said here:

Alexis Christoforous of Yahoo! Finance is speaking with a trader (apparently from the New York Stock Exchange) named Alan Valdes, Director of Floor Operations for Silverbear- @alanwallst). The video was likely made on Tuesday, October 10, 2017. The dialog goes like this:

YAHOO: "I want to switch gears and talk about gold because it's been rallying for the third straight day after being under some pressure for much of September. We also have the U.S. dollar giving back some recent gains. What do you think are behind these moves, Alan?"

TRADER (ALAN VALDES): "You know, gold's interesting. During the Korean crisis when you know every week there was a new missile being flown off you saw gold get as high as $1,335 and then its backed off- backed off to ...I think $1,275 or something like that. Now it's going back up, but you know what's also... there's a rumor going around that Saudi Arabia and China are working on a deal where the Saudis will sell the Chinese gold in return for the yuan which they can now sell into the Shanghai gold exchange and just get gold. Which is gonna pump gold up. You can see gold trading at $20,000 (Editor: per ounce) in a few years if that continues. So this could be the beginning of a big move for gold."

MY EDITORIAL COMMENTS: I'm not sure why you would take your own existing gold, trade it for a foreign currency and then back for your original gold again. They didn't mention oil at all during the video, and of course there is talk about the Saudis having a new stock IPO (initial public offering) for Saudi Aramco, which could be the biggest market cap company in the world, far exceeding the value of Apple and others. Perhaps the IPO has something to do with this, even though it wasn't mentioned.

[68Camaro]

Saudis wouldnt be selling gold. They would be selling oil for gold-backed yuan which they would either use for commerce or exchange for gold themselves. Effect the same? Possibly - any gold backed currency - and especially the yuan - would put a major demand on gold (I believe we're at peak gold for current price and while a price increase would stimulate some production I think the max production is energy limited regardless. 10x price upper would be easy, more possible. Do the chinese plan to do that? Dunno, but nothing they are working on is inconsistent with that approach.

[AGgressive Metal]

Sounds like he misspoke, the Chinese are trying to get Saudis to sell oil for Yuan, and he is speculating that the Saudis would then use this Yuan to buy gold in Shanghai, rather than convert it to USD or hold the yuan. There are not many yuan denominated bonds for them to buy, so its probably true that they would convert it to something else.

[shinnosuke]

Old thread but interesting how the Ukrainian conflict has made US$ world reserve currency status, the increased influence of the Chinese and their Yuan, as well as the precarious nature of US/Saudi relations a much hotter topic of late.

The elephants are dancing and we ants are just trying not to get crushed.