China to Push Gold Price Up?
2008 September 16
"China held $447.5 billion of US agency bonds as of June 2008….(and are) likely to reduce the portion of reserves in dollar assets from the current 60 percent by purchasing more non-dollar assets with new reserves." China Daily, Sept. 15, 2008
Gee, maybe the Chinese are going to buy a little gold with the billions of trade surplus dollars we send them every year. Even if they just trade their dollars for Euros or Swiss Francs it will push the dollar down & this alone will increase gold's cost. spot gold prices
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The real estate bubble burst, the financial market bubble burst, the credit market bubble burst, the energy bubble burst, the commodity bubble burst, the stock market bubble burst. Money moved from asset class to asset class along the way.
The next and final bubble to burst will be gold. History says it will. Gold is neat but you can’t do anything with it except cash it in for money to do something else with. When people start to head for the cash register, the price will plummet as viciously as the stock market. It always has. It always will. The slower ones will be left holding the losses and the gold bug rhetoric. I’d rather take my chances with inflation.
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I believe that with trillions of dollars of FIAT currency in the game. The money changers will play any game and tell any lie to prop up their system. Figures don’t lie, but liars figure.
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If gold is so useless why does the US have 262 million ounces in their vaults? Why does the Federal Reserve keep other countries gold stores in their vault in NY? Gold is a type of currency onto itself, it’s a fallback. Right now China, India and Russia barely have any gold reserves. You will soon be seeing Gold buying by these countries as a shore to their currency.
I think you have the wrong concept on gold; it’s not a commodity, but an alternate currency. Just like the dollar value, it fluctuates on demand.
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Since 1972 the DOW is up 8.5 times and Gold is up 25 times. Gold quietly preserves wealth through time. Enough said!
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Bankers hate gold Governments hate gold. They hate it because it is and always has been money. In good times, it’s the rich mans idolatry. But in times of insecurity, its every man’s agreed form of real money, for one simple reason. Unlike FIAT currency, it can’t be printed, it has to be mined, at considerable cost. It has been money culturally for thousands of years. The only difference is how many pieces of paper you’re willing to trade it for.
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