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

This is me :p

For those with short attention spans who don’t want to read to the end of the article, I’ll cut straight to the chase: China has much more gold than it says it does. In fact, China has more gold than the US. Its enormous gold hoards are all part of its grand global reserve currency status designs.
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Physical backed currencies would be a hindrance to China. This applies to the US as well as any other nation with reserve currency aspirations or not. Having a physical backed currency as the world reserve currency places a nation's economic security at risk and necessitates that that nation must constantly pursue austerity measures to ensure that they always have enough of the commodity to meet physical delivery. Further, the supply of physical backed currency is not flexible enough to meet market demand as supply can't be inflated or deflated which means that nations would find it more difficult to trade in order to meet the ever increasing needs of consumers at home.

I'm not sure why nations such as China or Russia stockpile gold (I can see a reason for Germany and Italy etc doing it), the only reason I can think is that either they're stuck in a centuries-old economic mentality or they do so in an attempt to display strength to their citizens. Russia or China or India increasing their gold hoard in their reserves doesn't translate across into trading partners or potential investors having increasing confidence in their economies.
 
^^^
not surprised by article... it’s just Western society believes more in shares... good luck!
 
If you don't know why the most powerful countries are hoarding gold bullion then there is something else going on that you don't know about, there is another reason other than perhaps creating a future gold backed currency, another reason that we don't understand but there is a good reason and it has something to do with an event in the future.

As evil as the Cut Copy Paste party may be they are not stupid. If they are hoarding gold bullion then that are anticipating a future event that will require them to have that bullion in their possession.
 
There is no need for a nation that has sovereignty over its currency to hoard gold, it’s a pointless exercise.
 
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so long as you have active volcanoes, there is need not to hoard any gold or silver. in the end time. Ring of fire will vomit pillars of gold and silver everyday. there will be islands of gold and silver in the open near you.
 
mmm....shiney! said:
I'm not sure why nations such as China or Russia stockpile gold (I can see a reason for Germany and Italy etc doing it), the only reason I can think is that either they're stuck in a centuries-old economic mentality or they do so in an attempt to display strength to their citizens.
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"Dont even think about gold, other countries. We have a shit ton of the stuff and will fck you up proper if you try it." Pretty strong disincentive
 
mmm....shiney! said:
There is no need for a nation that has sovereignty over its currency to hoard gold, it’s a pointless exercise.
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Up until the point where the IMF/CFR/EU/USA etc decide that the world has to be divided up again, and gold is the currency of choice.
 
JulieW said:
Up until the point where the IMF/CFR/EU/USA etc decide that the world has to be divided up again, and gold is the currency of choice.
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The IMF doesn't get a say in it.

The EU and the USA have sovereignty over their currencies on issue, they will not accept a currency system that is throttled by supply constraints.

I don't know what the CFR is.
 
Of course China is hoarding gold.
They will soon be the world's superpower in many ways and gold goes with that.
They probably make far more income than most as well.
 
mmm....shiney! said:
There is no need for a nation that has sovereignty over its currency to hoard gold, it’s a pointless exercise.
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Zimbabwe has full sovereignty over its currency, but who the hell wants it? Perhaps one man out of many millions.

Two Alan Greenspan quotes:
"Gold still represents the ultimate form of payment in the world. Fiat money in extremis is accepted by nobody."

"I view gold as the primary global currency. It is the only currency, along with silver, that does not require a counterparty signature. Gold, however, has always been far more valuable per ounce than silver. No one refuses gold as payment to discharge an obligation. Credit instruments and fiat currency depend on the credit worthiness of a counterparty. Gold, along with silver, is one of the only currencies that has an intrinsic value. It has always been that way. No one questions its value, and it has always been a valuable commodity, first coined in Asia Minor in 600 BC."

Stephen Leeb (author of "Red Alert") has asked/pointed out - that as the resources of the earth are limited, how will we best distribute these resources going forwards? Will it just be to whatever country can print their currency the quickest? Or perhaps will they (more wisely) be exchanged for another limited, ubiquitously-owned commodity; e.g. gold.

If Barack Obama actually went ahead with his trillion dollar platinum coin scheme, then in theory the US could have just fabricated 54 of them, and exchanged them in Africa for the rights to all their resources for the next 200 years, and then enforce these rights at the end of a barrel of a gun. They'd own the continent, lock stock and barrel.
 
IfUdonotholditUdonotownit said:
Zimbabwe has full sovereignty over its currency, but who the hell wants it?
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Invictus Energy obviously does. It doesn’t want gold, it wants Zimbabwean oil and it’ll trade that for Zimbabwean currency. SP is up some 400% in the past 12 months so there must be a lot of investors happy with Zimbabwean oil and Zimbabwean currency.

But you’re missing the point and I haven’t helped. If a nation pegs its currency to gold or any other commodity then it loses control over its economy and faces a future full of austerity.

This is why we will never ever ever ever ever use gold as a currency again.
 
mmm....shiney! said:
But you’re missing the point and I haven’t helped. If a nation pegs its currency to gold or any other commodity then it loses control over its economy and faces a future full of austerity.
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Totally agree. I don't know what the answer is, but we'll all find out soon I guess. But even the next "solution" will be temporary, because unfortunately there is still too much greed in the hearts of men, which prevents a truly equitable solution from ever being implemented (in the next 1000 years?), because it will prevent those in charge from being able to lord it over others - through the system.
 
mmm....shiney! said:
If a nation pegs its currency to gold or any other commodity then it loses control over its economy and faces a future full of austerity.

This is why we will never ever ever ever ever use gold as a currency again.
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Gold will be used again, but only for a short time to transition to the next fiat currency system. Just like with the Bretton Woods system.
 
leo25 said:
Gold will be used again, but only for a short time to transition to the next fiat currency system.
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Not a chance.

What's the point in transitioning to another fiat currency? Silk purses and sow's ears. Or even using a commodity as a transitional peg on the way to another monopoly issued currency? The only reason gold is still talked about as a means by which we can back our currencies is because it's something that nearly everyone has some awareness of. A bit like taxes fund government spending. It's common knowledge but it's outdated.
 
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