It has been evident for years that China is trading in its U.S. dollars for physical gold as rapidly as it possibly can, with all transactions in secret. The Chinese government, who have not publicly disclosed their holdings since 2009, believes the price of gold is seriously undervalued at present when it is compared to the U.S. government’s balance sheet. Now, it would appear, Russia is following suit. Both China and Russia clearly think that the United States cannot resolve its massive debt problem without an eventual debasement of the dollar.
This gold-purchasing policy is also in response to the ever-increasing growth in global derivatives. China is of the opinion that these increases will lead to more future economic instability, greater than that at present.
China will soon be looking to add their currency, the yuan, to the International Monetary Fund’s currency basket. At that point, their gold holdings will need to be disclosed. If you believe the global strength of the U.S. dollar is seriously on the demise, with no federal policy in place to protect it, please Like & Share this post.
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