Alasdair Macleod: China Ends Retail Paper Gold & Opens the Floodgates
Mining Network Jul 22, 2026
Summary
Hong Kong's new gold clearing system, free mainland-Hong Kong gold flows, and the end of retail paper gold point to a coordinated Chinese plan.
Macleod argues China has quietly accumulated state gold off-balance-sheet since the 1980s to protect the yuan from a failing Western fiat system.
New vaults that swap yuan for gold could let China fix the yuan to gold and replace Western paper markets.
Japan's 240 percent debt-to-GDP and Chinese Treasury selling point to rising US yields that only renewed money printing can fund.
His advice: exit credit and hold physical gold and silver in possession, the only assets without counterparty risk.
Key points on Aris Mining Corp
- The sponsor segment notes that Frank Giustra, Copper Giant's largest backer, co-founded Aris Mining, Colombia's largest gold producer, giving the Copper Giant team in-country Colombian expertise.
Alasdair Macleod's takeaways
- Top takeaway Argues China's simultaneous moves (Hong Kong's new gold clearing and settlement system, Chinese banks ending retail paper gold trading on the Shanghai Gold Exchange, and eased gold export restrictions) are part of a decades-long plan to secure the yuan against the failure of Western fiat currencies.
- Claims new gold vaults in Hong Kong and Saudi Arabia will let China fix the yuan to gold and build a physical market meant to replace the collapsing Western paper gold market, with vault capacity set to rise to 2,000 tons and dedicated refining in Shenzhen.
- Estimates China may control on the order of 70,000 tons of gold (roughly 35,000-45,000 tons held by the state plus about 28,000 tons delivered to the public via the Shanghai Gold Exchange), enough in his view to back the currency immediately.
- Contends G7 debt-to-GDP averaging over 100% makes a fiat collapse imminent, expects US 10-year Treasury yields to break above 5% (around 4.62% as of the episode), and says the Fed will ultimately cut rates and crash the dollar.
- Advises investors to get out of credit and hold physical gold and silver in possession, calling fiat currencies 'imaginary money'.
Scott Bessent's takeaways
- Top takeaway Macleod says Scott Bessent talked about revaluing or deploying US gold before becoming Treasury Secretary but has gone silent in the role, which Macleod takes as a sign the reported US gold holdings are compromised.
Frank Giustra's takeaways
- Top takeaway The sponsor segment identifies Frank Giustra as Copper Giant's largest backer and shareholder, with in-country expertise from co-founding Aris Mining, Colombia's largest gold producer.
- The host says Giustra has executed projects like this a couple of times before and states 'I trust him'.