Sunday, January 18, 2015

MoneyMetals.com: China’s Global Gold Supply "Game of Stones"

I saw this article a few days ago on the Money Metals Exchange website, and it came to mind last night as I considered increasing the amount of precious metals that I buy each month:

China has a 4-way global gold supply domination strategy. And it’s starting to corner the market.
First, China buys physical gold in world markets...
...Second, it keeps virtually all domestically mined gold “in house”...
...Third, China partners with or buys high grade, in-situ gold (and silver) projects around the globe...
...Fourth, and virtually impossible to quantify with a reasonable level of accuracy, are China’s efforts to purchase “off the books” gold production from what are known as informa or artisanal gold miners in Africa and South America.
 And the reason that I do so:
One of these days, at a time of its choosing, China may reveal just how much gold it does hold, alongside a possible decision to enable a newly gold-backed currency, the Yuan, to make its debut on the world’s financial stage. Such an event would have profound implications for the primacy of the U.S. dollar, as well as America’s ability to continue running printing press deficits, long financed by Chinese purchases of U.S. debt instruments, to the tune of several trillion dollars.
When this event takes place, it will become evident to the world’s financial players that, as Rickards so poignantly remarks, China’s true gold reserves will have become “a dagger pointed at the heart of the dollar.”
Like I've said before, I consider precious metals ownership to be a form of insurance. If you don't own any, now is a good time to get started.

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