Quote from article Relevance of Gold Since 2009 the emerging world has been accumulating gold for their reserves alongside the acquisition or surplus currency reserves. China has ensured it has access to the gold its citizens have also acquired in the retail market, by banning exports of gold. It's a small step from there to the confiscation of gold. India's citizens have approximately 20,000 tonnes of gold all over India. Russia has had a policy of increasing its gold reserves, supported by President Putin. He has stated that Russia should reach 10% of its reserves in gold. Russia's has a slow but persistent buying program of gold over the last few years. Several South American, central Asian and other nations have built gold reserves for themselves and continue to do so. Why? It is to defend themselves against the falling value of all currencies (including their own) in times of crisis. With the emerging world starting to build an alternative system to that of the western world, the times ahead are likely to be turbulent, uncertain and volatile. It's in this climate that gold acts as an anchor, a stabilizer and helps to keep the flow of international money going. The emerging world has to ensure that gold is a significant part of that new Yuan-based system. We expect this system to develop over, approximately, the next five years before it is mature enough to stand on its own. Once there, it will not oppose the developed world system, it won't work against it, but it will walk its own road, refusing to cow-tow to the U.S. political and financial requirements. It will continue to suck wealth and power from the west. That's why it needs to stand alone. Once Chinese exporters quote prices in the Chinese Yuan, then the separation of the two systems will have been completed. http://www.kitco.com/ind/AuthenticMoney/20120405.html
