Macro Liquidity by Sunil Reddy Profile picture
Sep 19 10 tweets 2 min read Read on X
China is quietly building a digital gold system that could replace the dollar in trade. Here’s how…
1/
💡 Did you know China runs two gold systems?
1) SHFE → futures, speculation, collateral.

2) SGE → spot, physical settlement, international vaults.
Banks constantly shuffle gold between them.

But a new shift could make both redundant 👇
#Gold #DeDollarization #China #BRICS #DigitalAssets #SoundMoneyImage
2/
Today it’s clunky:
1) Want leverage? Park gold in SHFE warrants.

2) Want to settle trade? Convert into SGE warrants.
Slow. Costly. Limited.
3/
Now imagine: instead of shuffling bars & paper warrants, banks issue gold tokens backed 1:1 by vault reserves.
⚡ Move instantly.
⚡ 24/7.
⚡ Across borders.
⚡ Fractional (down to grams).
4/
Think of it like this:
1) SHFE = your brokerage account.

2) SGE = your checking account.

3) Gold tokens = one digital wallet that does BOTH.
5/
For people like us 👉
Imagine paying someone in Dubai 0.5 grams of gold with a click.
No bank delays. No Swift. No USD middleman.
Gold finally becomes spendable money.
6/
For countries trading with China 👉
1) Oil from Saudi.

2) Wheat from Russia.

3) Copper from Africa.

All can be settled in gold tokens instead of USD.

Trust shifts from “paper promises” to “vault-backed digital gold
7/
This isn’t sci-fi.
Hong Kong’s SGE vault + early gold stablecoin pilots show the plumbing is being built.
China is preparing a gold-based settlement layer
8/
The impact? 🚨
1) De-dollarization accelerates.

2) US loses monopoly over trade settlement.

3) Gold reclaims its historic role… but in digital form.
9/
We may soon live in a world where:
Dollar = debt money.

Gold tokens = settlement money.

Two parallel systems. But the balance of power shifts.
10/
What looks like a technical shift (SHFE ↔ SGE → tokenization) is really a monetary revolution.
Gold is going digital.
And with it, the dollar’s dominance could fade faster than people expect. 🌍

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More from @SunilRe89392848

Aug 25
1/16
The Chart of the Century: Gold vs Dow
For 100 years, the Gold/Dow ratio has traced an expanding triangle (ABCDE).
We are now in Wave E — the terminal phase.

➡️ Elliott Wave target:
• Gold $20,000–$25,000 base case
• Silver $300–$500 (potentially >$1000 in mania)
• Gold/Dow ratio aiming for 20x from here, possibly retesting Upper trendline or a bit throwover
It seems unbelievable today. Bookmark this , in 10 years you’ll see how obvious it was.

The reset decade has begun. #Gold #Dow #ElliottWave #Reset #Markets #Macro #ChartOfThecenturyImage
What is GOLD/DJI?
It measures gold’s purchasing power vs equities. When it rises, gold outperforms stocks; when it falls, equities dominate. It’s the cleanest lens on money vs risk.
3/16
The structure (Grand Supercycle):
A (~1930s)
B (~1968 low)
C (1980 blowoff)
D (~2000 low)
E (now)
Boundary lines diverge → it’s an expanding triangle (rare, powerful).
Read 17 tweets

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