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China Aims For Official Gold Reserves At 8500 Tonnes
Submitted by Koos Jansen via BullionStar.com,
China should accumulate 8,500 tonnes in official gold reserves, more than the US, according to Song Xin, President of the China Gold Association, General Manager of the China National Gold Group Corporation and Party Secretary. He wrote this in an opinion editorial published on Sina Finance July 30, 2014. Gold is money par excellence in all circumstances and will help support the renminbi to become an international currency as “gold forms the very material basis for modern fiat currencies”, Song notes. In the short term the Chinese will not back the renminbi with gold (establish a fixed renminbi price for gold), but support it with gold so it has sufficient credibility for the world to accept it as a trade and reserve currency.
The previous President of the China Gold Association (CGA), Sun Zhaoxue, was also the General Manager of the China National Gold Group Corporation, these jobs are apparently connected. Song took over from Sun as CGA President and Manager of China National Gold in February 2014. Remarkably, when Sun was in office he wrote equally candid articles (in Chinese) about the importance of gold for China’s economy. Sun’s most renowned article is titled “Building A Strong Economic And Financial Security Barrier For China”, published on August 1, 2012, in Qiushi magazine, the main academic journal of the Chinese Communist Party’s Central Committee (click here for a translated version). From Sun:
The state will need to elevate gold to an equal strategic resource as oil.
Currently, there are more and more people recognizing that the ‘gold is useless’ story contains too many lies. Gold now suffers from a ‘smokescreen’ designed by the US, which stores 74% of global official gold reserves, to put down other currencies and maintain the US Dollar hegemony. Going to the source, the rise of the US dollar and British pound, and later the euro currency, from a single country currency to a global or regional currency was supported by their huge gold reserves.
Individual investment demand is an important component of China’s gold reserve system, we should encourage individual investment demand for gold. Practice shows that gold possession by citizens is an effective supplement to national reserves and is very important to national financial security.
Song’s vision is in line with these statements which confirms the strategy of the Communist Party of China to aggressively accumulate official gold reserves and to stimulate individual gold investment in order to strengthen the Chinese economy and protect it from internal and external shocks.
Note, Song is the President of the CGA that for political reasons largely understates Chinese gold demand figures in order to conceal China’s true hunger. Though clearly expressing his point of view in the next article, he could not disclose deviant data regarding CGA demand numbers. Actual Chinese wholesale gold demand in 2013 was 2197 tonnes, as is confirmed numerous times.
Translated by LK, gold investor from Hong Kong.
Gold Will Support Renminbi As It Moves To Join World
By Song Xin, General Manager of the China National Gold Group Corporation, Party Secretary and President of the China Gold Association.
2014-05-06 edition 6
For China, the strategic mission of gold lies in the support of RMB internationalization, and so let China become a world economic power and make sure that the “China Dream” is realized.
Gold is the only thing carrying the dual mantels of a commodity as well as a monetary substance. It’s both a very ‘honest’ asset and forms the very material basis for modern fiat currencies. Historically, gold has played an irreplaceable role in responses to financial crises and wars as it comes to protecting a country’s economic security. Because of this, gold carries with it an honored and divine-given strategic mission in the ascend of the Chinese people and the pursuit of the “China Dream”.
The Important Function Of Gold
Gold is the world’s only monetary asset that has no counter party risk, and is the only cross-nation, cross-language, cross-ethnicity, cross-religion and cross-culture globally recognized monetary asset. Gold is the last protection for a country’s economic security; it safeguards a nations sovereignty in times of crises. A textbook example happened in 1997 during the Asian financial crisis. To work through Korea’s severe debt problem, the IMF’s condition for a rescue package was to sell large enterprises. In the end, the Korean government had no choice but to call on its people to donate gold to settle the foreign debt, and it was only through this act that the chaebols at the center of the country’s economy and independence survived.
From our country’s point of view, gold has played an irreplaceable role in the development of our economic society. In the wars during the Revolution [1921-1937] gold provided strong support in the economic development of the liberated zones and achievements in reforms; in the three years of natural disasters, the nation used gold reserves to obtain information on living and production conditions and took actions to alleviate hardship. At the start of the great Reforms (1980’s), gold boosted our foreign reserve levels and helped the promising private sector and it advanced society. After 1989, we suffered economic sanctions from Western countries for a while and the PBOC used our gold reserves to enter into swap agreements to obtain needed foreign currencies. Right now, gold is still serving its functions to protect against economic risks; contributing in ever more important ways to our financial security. For the moment, although in general the international scene is peaceful, conflicts can develop in certain regions. If there should be a blockade or regional war, there could be only one method of payment left: gold.
The strategic Mission Of Gold
Since the 18th People Congress, general secretary Xi Jinping brought up the goal to revive our nation, to realize the “Chinese dream “. One important part of this dream is to have a strong economy. Though China is already the world’s second largest economy, there is still a long way to go to become an economic powerhouse. The most critical part to this is that we don’t have enough say in matters such as international finance and matters regarding the monetary system, the most obvious of which is the fact that the RMB hasn’t fully internationalized.
Gold is a monetary asset that transcends national sovereignty, is very powerful to settle obligations when everything else fails, hence it’s exactly the basis of a currency moving up in the international arena. When the British Pound and the USD became international currencies, their gold reserve as a share of total world gold reserves was 50% and 60% respectively; when the Euro was introduced, the combined gold reserves of the member countries was more than 10,000 tonnes, more than the US had. If the RMB wants to achieve international status, it must have popular acceptance and a stable value. To this end, other than having assurance from the issuing nation, it is very important to have enough gold as the foundation, raising the ‘gold content’ of the RMB. Therefore, to China, the meaning and mission of gold is to support the RMB to become an internationally accepted currency and make China an economic powerhouse.
In this view, our gold reserves are very low, both in terms of a nominal level as well as a percentage of official reserves. From the nominal level, the total official reserves of gold in the world stands at 30,000 tonnes, of which the USA has been occupying the first place at 8133.5 tonnes – 26 % of the world total. Germany has 3387.1 tonnes and Italy and France both hold more than 2,400 tonnes. Ours is 1054 tonnes at the sixths place – only 3.4% of the world total. As a percentage of a country’s total reserves, US gold reserves amount to 71.7 % and European nations have kept their levels between 40% to 70%. The average of the world is about 10%, but for us it’s only 1%.
That is why, in order for gold to fulfill its destined mission, we must raise our gold holdings a great deal, and do so with a solid plan. Step one should take us to the 4,000 tonnes mark, more than Germany and become number two in the world, next, we should increase step by step towards 8,500 tonnes, more than the US.
All-round, Multi-channel Increases In Gold Levels. Fulfill Our Part In Enabling Gold To Accomplish Its Strategic Mission.
How to achieve growth in our gold reserve? Apart from the PBOC directly buying in the open market, we should use also use the following strategies:
1. Relax gold import controls, grant large scale gold enterprises permits to import gold. In 2013, our gold consumption reached 1176.4 tonnes. Compared to the 426 tonnes of local production, there is a shortage of 750 tonnes. To meet this gap, we presently let the 12 commercial banks with gold-trading rights import standard gold ingots. But these banks lack the ability to refine and assay gold, they can only import standardized gold, missing the large amount of non-standardized gold and wasting the international resources that we could reach. By relaxing import controls, the large-scale gold companies can then obtain this gold and use their own technology to refine it into standard quality gold. This can help meet demand in the market, or turn gold into official reserves as required.
2. Establish a gold reserve building fund. This can be seeded using capital from the State Treasury, and open it for participation by private-sector capital in the public. It should be controlled by the State and used to target diverse off-shore gold resources, acquire mines and raw gold and in so doing, extend our reach beyond our borders and add a layer of opaque reserves to otherwise standard reserve numbers.
3. Establish a Gold bank. We need to establish our gold bank as soon as possible, and enable it to break the barrier between the commodity and monetary world. It can further help us acquire reserves and give us more say and control in the gold market. It may be guided under the PBOC and led by the China Gold Association, involving leading gold industry companies and commercial banks, and it’s business would include: gold pricing (fix), gold financing and leasing, gold-guaranteed payments, gold saving accounts, gold lending, gold production chain financing and issuance and trading of paper gold and other gold investments. This gold bank can then naturally use market-oriented methods to change commodity gold into monetary gold reserves, thus help us increase our strategic gold reserves.
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He wrote this in an opinion editorial published on Sina Finance July 30, 2014
China already got 8,500 tonnes of gold.
Well then, let me be the first to say it: Audit the PBOC!
If you think my faith in the Fed having the gold they say they do is low, it's nowhere near as low as my faith in the Chinese playing the game straight.
I bet there are multiple members of the ruling party in China who personally have a ton or more of gold buried under the basement floors of their many houses. Or already rushed out of the country on private jets to who knows where around the globe.
"Well, the Chinese bought it, so it must be in China's central bank" sounds like a sucker's bet to me.
Lowball number. Real China reserves may already be well over 20,000 tons. When they pull the rug out, the West will be stunned
What would 8,500 tons of gold be worth? I'm no expert in gold measurement (so those more experienced, please check my math), but I'll take a swing at it, using a little rounding to keep the numbers human-readable:
1 ton of gold (metric) = 1000Kg, or 1,000,000 grams
1 Troy ounce of gold = 31.1 grams (roughly)
1,000,000 grams / 31.1 grams per Troy ounce = 32,154 Troy ounces per Ton
32,154 Troy ounces per ton * 8500 tons = 270,309,000 total Troy ounces that China wants to hold in reserves.
270,309,000 Troy ounces * $1,200/oz = $324,370,800,000 (Over 324 TRILLION dollars worth of gold. 20,000 tons would be worth three quarters of a QUADRILLION dollars.)
One could be forgiven for having the same sceptical view of China's claims as one would have of the Federal Reserve's claims.
Uh, not quite. Edit your comment (hint- B not T).
You're right. B, not T. My calculator doesn't put in the commas and my eyes aren't what they used to be.
You're caught in a time warp, that's next years value.
I'm wondering whether Koos has one too many commas in the article's first sentence.
Also, this guy is talking his book. How much actual influence does he have on PBOC gold-buying decisions?
Christine Lagarde's next big statement:
new international law that all gold is owned by the IMF. All gold can only be on lease by the IMF. Law is retrospective to the beginning of civilization
I reckon my estimate isn't (wasn't) far off.
http://twoshortplanksunplugged.blogspot.com.au/2013/06/chinas-goldreserves-how-big-is-elephant.html
Not to be outdone, acting President Yellen has declared the 5-Year Plan which includes stockpiling 9,000 tons of Gold (-plated Tungsten) in the commercial vaults of the former J.P. Morgan Building in NYC.
This gentleman reports directly to the Party. Be sure that his writing is circulated through a distribution list. So for all intents and purposes, one may consider this a Policy Paper. The writer has a great deal of influence.
The following topical sentence stands out, for its direct meaning and for the ramifications: "The most critical part to this is that we don’t have enough say in matters such as international finance and matters regarding the monetary system."
It is important to appreciate the care that has been taken with intelligent, methodical word craft. The subject is too important and message too clear for it to be misconstrued without turning the one who does the misconstruing into a liar. Like Putin's writing, it needs to be appreciated as much for what it says as for what is implied. Naturally, our controlled media will prattle in some fashion about how the "Chicoms are out to get us," but that isn't what they are saying. China intends to seek independence from western debt monetary hegemony.
It's too bad that many of our policy wonks share western acculturation. We are shallow generally, which handicaps the ability for most readers to understand diplomatic messages in appropriate historical and other context. On the international stage, we are perceived increasingly to be substituting brawn to compensate for our lack of brains and ethics and a general humility that one associates with healthy leadership and institutions not hijacked by psychopaths.
@Lore - very well stated.
American "brawn" is overrated...
Makes a big difference. Amounts to $50 per person on Earth ... a little over a tank of gasoline. People make such a big deal about gold. There's more value in gasoline out there than there is in gold.
might wanna go over your math again....you're off a couple of decimal points
Numbers OK, but he doesn't seem to understand what a "billion" is. Hint: 10^9.
I got it, OK? I fucked up. I'll go commit ritual suicide now. American-style. With a nail gun.
BTW, thumbs up on the Paslode cordless avatar.
Three to be exact. The math is right, my reading of it is wrong.
Let's not forget:
Win a World War and ride that wave for 70+ years
Spend 50% of the world's total military spending on your military
Then no one seems to care how much or even if you have any gold in reserve
I come up with just over 300 billion in today's price
Correct. I biffed it.
your math looks OK, but your reading needs some improvement.
1 trillion has 12 zero's. so your final figure is 324 BILLION. which would still be < 10% of just their total forex reserves... which doesn't include other government assets (SOE's, etc.).
"your math looks OK, but your reading needs some improvement."
If I had a nickel for every time I did that I'd have a thousand dollars. Or maybe just one dollar. So hard to tell when your eyes read 3 extra zeros that don't exist in the number.
When they get the price up to 20K/oz and above then we'll recalculate
"So hard to tell when your eyes read 3 extra zeros that don't exist in the number."
Sounds like a qualified candidate for Treasury Secretary to me.
320b? In that case make gold $36,000 per ounce and China will have enough gold to have a 100% gold backed currency!
Kind of silly to think of gold backing a medium of exchange isn't it!
Yes, very much so. Backing = fixing which means gold standard which is dumb and historically failed every time.
That is backward thinking.
Thatd be retarded. I dont think you understand the problem of 100% reserved money supply.
Fiat is needed and it is needed to be fully unrestrained- it should expand and contract according to environemental conditions (economic environ) and we should not save it. It's meant to spend and if you have a need to save, buy physical gold with the extra credit in your bank account and save a real asset.
When you know that money (you call it fiat) is freely created by "traders making trading promises and getting them certified" those certificates then trading as objects of simple barter because they can be guaranteed to be most widely accepted and to never lose their value.
Because money is created by traders, supply and demand for it is always in perfect balance ... it's the nature of a trade. It is guaranteed to exhibit zero inflation by the relation INFLATION = DEFAULT - INTEREST.
Failed trades (and this includes roll overs ... the government's method of never delivering on a trade) are DEFAULTs. If not reclaimed, they circulate forever diluting the value of all other legitimate in-process trades. Thus, DEFAULTs are strictly identified and monitored and a like amount of INTEREST is immediately collected from new trading promises. This guarantees zero inflation everywhere all the time.
The estimation of DEFAULT risk and assessment of INTEREST collections is an actuarial problem just as assessment of risk and premiums is for insurance.
Capital plays no role at all. Backing is in the process ... implicitly covered by the marketplace (as is non-zero INFLATION right now). Pricing, employment, GDP, savings, hoarding, and all the other economics gobbledegook are of no import whatever. Traders are always free to make new trading promises and get them certified. Reliable traders enjoy zero INTEREST as they never leave DEFAULTs.
Want to see something cool? Put it back on a gold reserve and what should golds value become?
Total US Dollars in All Banks : $14.3 Trillion
Total Gold Reserves in Fort Knox : 7400 tons
Gold Value / ounce : $56,000
Futures Price : $1180
Ratio : 50 : 1
But the US does not have 7400 tons of anything but bullshit!! The Gold in Fort Knox is Tungsten and the real reserves in New York is about 433 tons
http://www.globalresearch.ca/us-gold-reserve-audit-show/5326810
If this is the case the value of gold to go back to an honest reserve ratio would price it at $1.2 Million / ounce!!!
In otherwords in the coming correction the US dollar is completely worthless everything denominated in US dollars will loose 90% of it's value but Gold will not!! It will go to $3000 an ounce while prices fall 90%.
So the guy that invests $300,000 in a house will see it become worth $40,000
The same guy that invests $300,000 in gold today will see it become worth $900,000 but that $900,000 will buy $9,000,000 in assets in todays prices.
GET INTO GOLD PEOPLE!
GET INTO GOLD PEOPLE!
When gold is worth $53,000/oz everyone will be into digging for gold and grinding up computers. GET INTO SHOVELS AND GRINDERS PEOPLE!
"you may already be a winner..."
you mean.....maybe those 15 places I pass on the way to work that say "BUY GOLD" might....just might be a front for a massive Chinese accumulation? that can't be.... :)
Hey Mr. Chinese President....why don't you just offer 15,000RMB to foreigners who hit the Beijing Airport with an ounce of gold, and accumulate it that way. We will spend it all on our vacation anyway, so we'll be giving it right back.
i went into a we buy gold shop before to see if they ever sell anything ,also to get their rates incase i was ever in a pinch and needed a few fiats , anyway the manager said they are basically a front for a rich russian businessman ... pretty funny stuff
I could see anywhere between 10-20,000 tonnes.
NoDebt
Agreed - it will quickly evolve into physical gold money payment.
The whole issue is about loss of trust and integrity of payment.
Only gold itself addresses both issues.
Thus the large Chinese gold hoard.
the chinese military can be trusted to want to actually own gold as preparation for the next world war.
all the other fraud and bullshit in china, is just the ocean of economic landscape that always , at times, gets frothy with financial panics. the miliatary industrial compelx is the their goal.
sure they copy lots of shit at cheap price and may not have the highest tech stuff, but their strategy is clear. grow as fast as one can grow an economy, but subsume all political resistance like a juggernaut , until revolutions must be internally repressed , and then keep going.
is the u.s. so different? only wealthier and with fewer mouths to feed?
@NoDebt- Seriously.... how is that ANY different than our politicians these days? For goodness sake they LEGALIZED INSIDER TRADING FOR THEMSELVES AND THEIR FAMILIES thanks to Eric Cantor!!!!
I agree with you about your comments regarding the CHICOMS but think about where we are sitting in America with the rigged system and tell me you really feel it is different how?
LEGALIZED INSIDER TRADING FOR ALL FEDERAL POLITICIANS in the LEGISLATURE AND AND AND THEIR FAMILIES!!!!!
but you and others here already knew that..... didn't you?
prove it
Yes, I doubt they would talk about it ahead of purchases. That's how you lose money. It's also proof whatever loon sells on the COMEX isn't PBOC.
China's already got more than 8,500 tonnes and they aren't stopping.
I'm a little lost here. Even by their 'official' accounting they already have over 1000 tons and they say they want to have more than the US... but 1000 is more than zero isn't it?
Actually, it's Germany that has zero gold. They gave theirs to the US for safe keeping and they'll never see it again.
If they visit China they can see it.
prove it
Turns out that the Central Bank of DoChenRollingBearing also aims for having 8500 tonnes of gold as well.
China is somewhat closer though.
You'd be closer except for that boat trip...
I, too, aim aiming towards 8500 in gold carrots.
my roomate's sister makes $80 hourly on the internet . She has been fired from work for 6 months but last month her paycheck was $14750 just working on the internet for a few hours. check it out... www.yelptrade.com
Your ad could be here!
I'm not one for censorship, but I'm thinking Tyler/Sac could just not let messages save if it happens to have the word "yelptrade."
Kind of like mentioning "tavistock" on a certain conspiracy board.
The other day you also had four up votes.
Coincidence? I think not.
What time does her sex show start?
ZH breaking news
$50,000USD
Maybe they want it cheaper
8500 tons !!! Thats my goal too !!!
Dr David Banner, I presume?
not right now, I'm moving a thousand tons of gold around...
Ok, there's a shirt and a pair of jeans on the clothes line if you need them. Just leave a couple of bucks under the peg.
Have you priced jeans lately???
Song Xin, President of the China Gold Association
hmmmm
Those crazy Chinese.
Don't they know gold is heavier than paper?
How are they gonna sew that into their clothing?
Maybe he meant to say "8,500 more tons"
"Song Xin, you put the real figure of PRC gold inventory in the story! Take it out!"
"Yes, Minister. How much should I say we have?"
"Claim the amount the Fed says they have, haha."
"Haha!"
"Haha!"
"Haha, whew! Let's get a drink."
yes so smart chinese guys !!
really, and then the same thing will happen as before, and the chinese will get weaseled out of their gold by the bankers and some new bullshit political movement ..... the will do the same, you'll see
Sun Tzu
So what happens when the real deal runs out and paper gold is all that you can get?
Paper "gold" goes to zero! But yours was a rhetorical question.
No tyranic government will ever use gold as currency. Gold bugs thinking that China will do that are delusional.
No tyranic government will ever use gold as currency. Gold bugs thinking that China will do that are delusional.
This new was published on september
http://www.mineweb.com/mineweb/content/en/mineweb-gold-news?oid=254999&s...
Why now ZH? More pupets needed to sell this god turd
INTERESTING COMMENT ABOUT THE IMPORTANCE OF HAVING THE PEOPLE OWN GOLD...SOUNDS KINDA PRO LIBERTY..
sounds more like the Korea case of, "you will 'volunteer' your gold to us when the financial shit hits the fan, so buy as much as you can and pretend it's yours... for now"
Gold, Huh, what is it good for, absolutely nothing; say it again...
Such a barbarous relic, who would want that?
In your case, ironically, I think you for got the sarc tag.
I would....
"Gold is the world’s only monetary asset that has no counter party risk, and is the only cross-nation, cross-language, cross-ethnicity, cross-religion and cross-culture globally recognized monetary asset."
Looks like we've found our one world focal point all rolled up into one substance
Now if we can just eliminate the globalist criminals first before they steal it all and kill most of us we'd be on to something
"On a long enough timeline"
It's really just normalization bias.
History is being made, again.
LOL......
Chinas on the up
Song, Sun Blue - Everybody knows one..
Isn't that a Neil Diamond song?
The Chinese Government thinks this is about power, supporting a currency, equaling USA influence.
The Chinese People think this is about money, and all they want is money.
Once something goes in to China, it does not come out. It may be destroyed, certainly, but sell it away? Never - and I do literally mean the definition of 'never'.
Once that gold goes in, it's a black box and won't ever leave or be seen or audited. Since China is taking lessons from the USA, China will lie about their reserves as well, and over state them to benefit.
https://www.youtube.com/watch?v=xpvGniYdBVk
Nonsense; it don't mean a thing if it ain't got that convertability swing!
What he really meant to say is 85'000 tonnes.
Giving paper to Isis to buy $50 Turkish Oil. BRICS I am F you C K ed says Mr I am F air traffic control Afghanistan Isis supporting $50 oil Tin soldiers protecting 10000 PetroChina oil workers southern Iraq excuse me excuse me excuse me excuse me more paper more paper more paper more paper I put on the chin strap on my tin foil hat here we go its covering both left and right ears more paper more paper more paper
What weighs more? A ton of gold or a ton of paper? Oh wait, that's not the question.
gold spike
.
dollars are still cheap china has credit
.
paper is in a securlar bull market bitchez
Resistance is futile
"All your gold are belong to us!"
We get signal, main screen turn on!
What you say???
"You are on the way to destruction!
You have no chance to survive, make your time!
Ha ha ha!"
Horee Fuk
say hello to our chinese landlords soon...
So is it fair to say that when all the fiat currencies begin to "mousetrap" into failure like falling dominoes and becoming worth less[worthless as well]....
Holders of real assets, including "real money" e.g. gold will benefit, and benefit substantially ?
'Cause I'm still a stackin'
Or am I just a poorly informed old redneck?
hairball
I'd rather have 8,500 tons of Bitcoin.
electron mass = 9.10938291 × 10-31 kilograms - Dude, that's a shitload of bitcoin.I guess Song Xin didn't get Bernanke's memo. There is no need for central banks to own gold. Gold is not money, it's only for tradition's sake that we hold any at all. If you print enough paper money, you can buy the world.
Don't suppose China will hold any of that Gold at the Federal Reserve Bullion Bank!
Once they own it, perhaps they will.
But they will only hire fellow celestials as guards.
For elites in and around the CPS, Gold accumulation is a national security issue, not an economic one.
China is a very old civilization and the concept of "patience" is entirely divorced from Western views.
China political culture is steeped in fantastic warfare - real death and power.
The capacity for the US to project its power across the Pacific and otherwise encircle China across the Asian frontiers is purely a function of the US dollar and debt issuance to deploy all those aircraft carriers, subs and drone bases.
China aims to bankrupt the USA and otherwise avoid outright warfare. Gold price suppression works in favor of China in its stealth accumulation of gold in exchange for worthless US dollars. In this way the big banks actually are working to help China.
I think the near term goal is 2020 to have as much gold as the US AND domiciled in China. No reason to make it public. No reason to telegraph any long term intent.
When that happens you will be US companies (like Walmart) being compelled to settle international trade in yuan or gold and otherwise tank the dollar. They already know the US is bankrupt, but Japan is the the first tin solider to get melted.
The two oldest cultures/societies, India and China, have always stood by Gold.
I am surprsied India does not sink into the ocean with all the gold they have, probably more than China.
Is it just me, but silver does have the exact same qualities too. AND it is a much more imporant commodity than gold, and only ~10 times more comes out of the ground, of which half is consumed by industry (with gold it's less than 10% that is consumed and the recycling rate is much higher) - leaving only about 5x more silver above ground for investment purposes where gold/silver price ratio is ~75. Hmmm....
Yes, it's just you. Everyone else recognizes that they do not have exactly the same qualities.
Maybe Tinky, but I doubt it. Historically the two metals are tightly correlated. Let's wait and see what'll happen once the current pricing mechansim breaks. Till then anything is possible.
Hahaha !
Jacques Rueff who wrote the Monetary SIN of the West in 1972, when BW was revoked and the US went ALL IN into fiat without gold back up--thank you very much Mr Friedman of Chicago "my home town" school-- must be laffing in his grave!
At least Keynes-- that old scape-goat of Von Mises school-- wanted a Bancor based gold-exchange standard (which Rueff thorougly despised) and which got shot down by Mr White representing the $ hegemony mantra of what became the official BW agreement.
Those Chinese have always loved gold since the Silk route days of old!
In the short term, the dollar will correct into the low 80s, gold will correct into the mid 1300s. However, they are travelling in opposite directions...
Gold
http://www.globaldeflationnews.com/10-yr-us-treasury-yieldelliott-wave-u...
Dollar
http://www.globaldeflationnews.com/u-s-dollar-indexelliott-wave-update-f...
Like the US, they just want the privilege to wage Financial war when the time comes...
How do you say "gold bitchez!" in Mandarin?
Gold is money par excellence in all circumstances and will help support the renminbi to become an international currency as “gold forms the very material basis for modern fiat currencies”
Gold may be a "store of value" par excellence, but it sure isn't money. With money you can buy gasoline and other things at a convenience store. You can't do that with gold.
Gold will never be "the very material basis for modern fiat currencies". To be that, there must be enough for everyone holding fiat currency to exchange it for gold ... at the same time. With only one ounce per person on earth, there just isn't enough gold to do that ... ever.
It is so nice of our banksters and politicians to lower the price of gold so the Chicoms can stack it.
I think the siren-song of stealthy theft through inflation, and unjust wealth accumulation by way of reserve currency status is more enticing than any human organization can withstand.
Honest money will never come from a government for long.
This article confirms my views relative to China (and probably Russia), that they do not want nature-controlled monetary policy in the form of gold, but instead want to take a piece of the US's reserve-currency graft.
I mean that these countries do not want to change the US Federal Reserve's system. They want to replicate it. They simply want to change the beneficiaries of that system from those in New York to those in Moscow and Beijing.
While simple competition for reserve status will be an improvement, and will lead to better monetary policy, it is still in an entirely different realm than a real gold standard (where the currency IS GOLD rather than merely pegged to gold).