Koos Jansen: The gold-backed oil-yuan futures contract myth


10:06a ET Sunday, October 15, 2017

Dear Friend of GATA and Gold:

Gold researcher and Chinese gold market expert Koos Jansen today argues that the Nikkei Asian Review's September 1 report asserting that China is planning an oil futures contract somehow "backed" by gold --


-- is full of holes.

Jansen writes:

"China hasn't announced anything but an oil-yuan futures contract. Gold has nothing to do with it.

... Dispatch continues below ...


USAGold: Coins and bullion since 1973

USAGold, well known for its Internet site, USAGold.com, offers contemporary bullion coins and bullion-related historic gold coins for delivery to private investors in the United States, Europe, Canada, Australia, and New Zealand. It is one of the oldest and most respected names in the gold industry, with thousands of clients and an approach to investment that emphasizes guidance and individual needs over high-pressure sales tactics. The firm's zero-complaint record at the Better Business Bureau makes it an ideal match for the conservative, long-term investor looking for a reliable contact in the gold business.

Please call 1-800-869-5115x100 and ask for the trading desk, or visit:


USAGold: Great prices, quick delivery -- all the time.

"Yuan can technically be spent on gold at the Shanghai Gold Exchange but gold in the Chinese domestic market (the Shanghai Gold Exchange system) is not allowed to be exported. Gold from the Shanghai Gold Exchange International is allowed to be exported but is bought in the international market via yuan with U.S. dollars.

"Foreign enterprises, like oil producers, cannot hedge gold on the Shanghai Futures Exchange. The Shanghai Futures Exchange is not open for international customers. There is only a spot-deferred product listed on the Shanghai Gold Exchange, which is comparable to a futures contract, through which foreign enterprises can hedge gold in yuan. But why would oil producers buy gold and subsequently hedge the metal in yuan? Their end position would be merely exposure to the price of yuan. Why then not buy a yuan-denominated bond with an interest rate? Or hold gold without the hedge?"

Jansen's analysis is headlined "The Gold-Backed Oil-Yuan Futures Contract Myth" and it's posted at Bullion Star here:


CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

* * *

Join GATA here:

New Orleans Investment Conference
Wednesday-Saturday, October 25-28, 2017
Hilton New Orleans Riverside Hotel, New Orleans, Louisiana

Mines and Money London
Business Design Centre
London, England, United Kingdom
Monday-Thursday, November 27-30, 2017

* * *

Help keep GATA going:

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:


To contribute to GATA, please visit: