CMKM Diamonds Inc. (fka CMKX)

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CMKX is waiting for Goldbacked money?

China's New Gold-Backed Oil Futures Contract Cuts Out U.S. Dollar
Sep. 6, 2017

Summary

At the turn of the year, I wrote an article related to a possible Trump induced rally in gold.

Since then, we've had two additional bullish factors: the North Korea crisis and Hurricane Harvey.

Here's a new bullish factor flying under the radar: China has created an oil benchmark based on gold, effectively cutting out the U.S. dollar.

Amid an already very bullish environment for the appreciation of gold, a recent development could cause massive disruption in to today's global oil market: the imminent introduction by the Chinese of a yuan based - and gold backed - crude oil futures contract. But before discussing that in some depth, let's first summarize the already very bullish backdrop for gold.

After considerable gold liquidation following last year's presidential election, my last Seeking Alpha article of 2016 was a bullish call on gold and "The Possibility Of A Trump-Induced Bull Run." I expanded on that theme with Part II and Part III as the Trump administration began taking action. In addition, I noted the bullish impact on gold of a falling U.S. dollar in this Seeking Alpha article.

Recent events - like North Korea's nuclear detonations and missile tests, Hurricane Harvey, and the up-coming need for Congress to raise the U.S. debt ceiling again - are all singularly bullish for gold. In aggregate, these events are compelling reasons why investors should seriously consider increasing their gold positions.

Note I wrote an article back in 2012 on the possibility that global warming, and the storms it helps intensify, will support higher gold prices via increased and substantial U.S. deficit spending to fund storm recovery efforts (see "Global Warming Will Push Gold Higher"). It's taken awhile to see that thesis come to fruition, but note that CNN reported that Texas Governor Greg Abbot thinks Texas will need "far in excess" of $125 billion in federal relief dollars. Houston Rep. Sheila Jackson Lee called for a record-breaking $150 billion aid package.

Federal hurricane assistance has increased dramatically since Hurricane Katrina, with the federal government shelling out more than $200 billion. About half went to the Katrina recovery effort and a quarter of which went to Hurricane Sandy relief efforts.

https://seekingalpha.com/article/4104448-chinas-new-gold-backed-oil-futures-contract-cuts-u-s-dollar