China Probably Raised Gold Hoard Again by Adding 14 Tons
Saturday, 07 Nov 2015 12:52 PM
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China probably boosted central-bank gold holdings yet again in October, raising them by about 14 metric tons, as it seeks to diversify its foreign exchange reserves.
The value of gold assets was $63.26 billion at the end of last month from $61.19 billion at end-September, according to data on the People’s Bank of China website released Saturday. That works out to 55.38 million troy ounces or about 1,722.5 tons, based on the London Bullion Market Association afternoon price auction on Oct. 30, Bloomberg calculations show. The stash was 54.93 million ounces a month earlier.
China ended six years of mystery in July over how much gold it’s hoarding as it seeks to spur greater global use of its currency and pushes for the yuan to be included in the International Monetary Fund’s Special Drawing Rights basket.
Efforts to promote the yuan have boosted speculation the government is stockpiling gold as part of a plan to diversify its $3.53 trillion in foreign-exchange reserves.
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Unless you think that the Chinese are “dumb” — according to the Keynesian economists — gold is more valuable than fiat currencies.
Silver and gold were money long ago — prior to the 1932 in the USA — thanks FDR — and probably will be again.
When the <synonym for excrement> hits the proverbial fan, how will you protect your wealth.
Real estate can be taxed to death. Savings are ravaged by inflation and zero interest rates. Technology is eliminating unskilled labor at $15 per hour. And outsourcing is killing white collar and high paying blue collar work. Also, just in case there’s anything left, HB1 visas are allowing foreigners to replace American workers.
Trump is tapping into the anger and frustration of “We, The Sheeple”.
And, the Chinese are “diversifying” out of US Treasury debt and into gold.
What should you do? I know what I’m doing.
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