China owns a lot more gold than it’s letting on – and here’s why

Discussion in 'Gold' started by Acorn, Apr 29, 2021.

  1. leo25

    leo25 Well-Known Member Silver Stacker

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    Because at some point they will want some new global digital currency/credit system. And they know it's easier to give people the illusion of confidence/acceptance then to always use force. The Bretton Woods system was never designed to use gold, but they understood the psychological power of the yellow metal and it made their job a lot easier to get people to accept it in the beginning.
     
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  2. mmm....shiney!

    mmm....shiney! Administrator Staff Member Silver Stacker

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    "They" implies that the various nations of the world will cooperate and willingly relinquish their sovereignty. The nations of the world have enough trouble trading kidney beans for milk or signing a Paris agreement, let alone agreeing on a new global digital currency which necessitates governments relinquishing control over their monetary sovereignty.

    The Bretton Woods system was designed to use USD. The nations of the world reluctantly agreed to settle trade for USD as long as the Yanks guaranteed that every $ issued would be backed by gold. That didn't work out because gold is basically a finite resource, whereas consumer needs and wants are infinite.
     
  3. IfUdonotholditUdonotownit

    IfUdonotholditUdonotownit Active Member

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    Jim Rickards says that having lots of gold will give you "a seat at the table" when the new system is being decided. But the idea of another fiat currency, is (imo) dead-on-arrival. A cryptocurrency seems like a high probability because of how it can be programmed; e.g. the population total and birth rates can be used as input factors into the algorithm - as to the rate of coin issuance, expiry-dates, etc etc.
     
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  4. leo25

    leo25 Well-Known Member Silver Stacker

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    Willingly or unwilling, it will happen. Once that system is in play, other countries will want a secondary currency that is trusted globally to conduct trade in the shadows. That will most likely be gold and would explain why so many countries want to HODL it until a time when they need to use it.


    Yes, this is just verifying my point. They will suck people in once again with gold.
     
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  5. mmm....shiney!

    mmm....shiney! Administrator Staff Member Silver Stacker

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    Except they're not.

    Screen Shot 2021-05-22 at 6.37.09 pm.png

    https://www.centralbanking.com/cent...reserves-in-central-banks-2020-survey-results

    "Crazy" countries may be buying gold, but that's because they're crazy. China is a case in point.

    A Central Bank can hit ENTER on a keyboard as many times as it likes until the keyboard breaks and then they buy a new one. Which you know. Unlike gold. When you've spent your last Sovereign your only option is to go to war. But when you've got sovereignty over the issuance of currency the sky is the limit.
     
  6. dollars

    dollars Active Member Silver Stacker

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    Not quite your only option!

    You have the option of trading something of value ( goods, services ...) for another sovereign.
     
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  7. mmm....shiney!

    mmm....shiney! Administrator Staff Member Silver Stacker

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    Presumably if you've spent your last Sovereign and reached the point where your only option is to invade another country and steal their stuff, then you've probably moved beyond the "trading something of value" scenario. A country can only afford to export stuff in excess of its domestic demand otherwise it creates a recession or has to take austerity measures.

    Hence why Bretton Woods was abandoned.
     
  8. JulieW

    JulieW Well-Known Member Silver Stacker

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    So Shiney, how is gold placed in your plans current and future?

    I'm seeing a slow trickle up and when the target I'm hoping for is hit, well just saying, I'm not sentimental about lumps of metal at all.


    (btw - CFR Council for Foreign Relations - a purported boys club that directs nations around the world in a sort of human chess game)
     
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  9. alor

    alor Well-Known Member Silver Stacker

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    Mars landing can see more gold lol
     
  10. Jason1

    Jason1 Well-Known Member

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    yup, one would be very suspicious of a country stocking up on gold, especially a very hostile one like china.
    Gold is a very important war commodity, used for trading between allied countries for weapons,ammunition and other important war materials.
    you may not trust the other guys currency, but gold on the other hand, every one knows its value and its been used for trade in wars for thousands of years, and it still is.
    Allot of gold changes hands to buy weapons even to this day.
    Once the winner has been decided then the victors currency is the currency of power. But during war, gold is king.
    good chance War will decide what fiat will be considered king in the future
     
    Last edited: May 22, 2021
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  11. JohnnyBravo300

    JohnnyBravo300 Well-Known Member Silver Stacker

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    The more fiat a country prints, the more gold they will need to hoard for the end.
    When the piper needs paid you better have something better than worthless paper or youll be left behind haha.
    The world will move on and you'll end like Japan or Venzuela, zimbabwe and the rest.

    Generational nothingness or stagflation if they are lucky.

    He who owns the gold makes the rules. It's always been that way.
     
  12. mmm....shiney!

    mmm....shiney! Administrator Staff Member Silver Stacker

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    It's certainly changed over the past 10 years. Initially I was piling quite a bit into gold and to a lesser extent silver with the end goal being to sell the majority of it in the AUD3000 - AUD5000 per ounce price range and buy investment property.

    But the changing nature of the crypto market has caused us to reflect on the value of gold. We made a decision at first to get exposure to the crypto market in our investment portfolio a few years ago and more recently liquidate most of our precious metals holdings into crypto. We based this on the view that cryptos will increasingly outperform gold as an asset in both capital gain and as a store of value. Furthermore, the Defi opportunity (the ability to either borrow against your crypto holdings or earn money from them) in crypto is more beneficial from an accumulation/income perspective than gold.

    The upshot is that gold makes up about 3% of our total portfolio. The fundamentals for gold haven't changed ie inflation of the money supply will continue to see the yellow metal in demand as a strategy to try to protect purchasing power, we are just of the opinion that BTC and a few alt coins will just do a better job because gold as a "tool" to protect wealth is now outdated "technology".
     
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  13. mmm....shiney!

    mmm....shiney! Administrator Staff Member Silver Stacker

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    Bill Mitchell (an MM theorist and raving Marxist) on the gold standard and the demise of Bretton Woods:

    Despite the arguments of others in this thread, gold is not a treasury for war.

    http://bilbo.economicoutlook.net/blog/?p=20754
     
  14. mmm....shiney!

    mmm....shiney! Administrator Staff Member Silver Stacker

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    Paper published by the World Gold Council examining that central banks generally buy gold as a currency hedge to reduce the exposure of their balance sheets to USD weakness as there is a negative correlation (-0.5) between the price of gold in USD and the USD. You have to subscribe to read the paper, it's free.

    https://www.gold.org/goldhub/research/monetary-gold-and-central-bank-capital
     
  15. mmm....shiney!

    mmm....shiney! Administrator Staff Member Silver Stacker

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    Gold demand H1 2021.

    Screen Shot 2021-07-29 at 10.25.55 pm.png
     
  16. mmm....shiney!

    mmm....shiney! Administrator Staff Member Silver Stacker

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    So you stocking up on RMB?
     
  17. alor

    alor Well-Known Member Silver Stacker

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    freshmeat in diablo games, loves the cries when cutting them down
     
  18. hardyakkagold

    hardyakkagold Well-Known Member Silver Stacker

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    The globalist elite banksters have bankrolled China's rise to world dominance, so they will still be in charge as always, you need to look at the bigger picture lads.

    It is just that they are transferring the governance of their global empire from the USA to China.

    So nothing to see here, move right along. :rolleyes:
     
    Last edited: Jul 30, 2021
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  19. precious roar

    precious roar Active Member

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    This website never ceases to amuse.
     

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