Saw this article listed at CoinFlation.com: http://www.bloomberg.com/news/2011-...otals-200-tons-so-far-this-year-ubs-says.html This is the beginning of China's huge impact. How much further behind could India be?
One very interesting part of the story was about the Chinese banks savings account in gold. Again, I think that the banks are 100% government ( Central committee or military) controlled. How convenient it would be to nationalize the gold and issue devalued currency later. Maybe I am too suspicious. Jim
Even though much information that comes out of China can be disputed, there are some things that are stone cold legit. It is proven that China is purchasing PMs at a frenzied pace. (They are cornering the rare earth metals as well, but that`s for another discussion) I can speak from experience that in my town people are buying more and more PMs too. Many times I have been in coin shops and somebody completely new to coins and PMs will come in and buy a good amount of bullion. I think with all the civil unrest that`s going on We will see the PMs slowly rise this year. With no "quick fix" in sight, the commodities are going to skyrocket.....much to the chagrin of this coffee drinker.
Much of China's PM purchases are from domestic production. They just aren't letting them leave the country. Guns are essentially banned in China, so if the average person there has any PM's how are they going to defend them when the party takes action to confiscate. What say you comrade?
I would say the gun issue is irrelevant. When the swat team comes to take your coins, do you really expect to "win" the shootout? Personally, I think that if a confiscation is announced, it is best to go along and reinvest in something else. Any other decision would be insane, or at least unsane.
I found the following quote from the article interesting being that the yaun is basically pegged to the dollar. "China’s consumer prices rose 4.9 percent in January from a year earlier, exceeding policy makers’ 4 percent ceiling for a fourth month." Although I am not
Agreed - I generally discount the plans of 'internet tough guys' to fend off confiscation through force of arms. If gold or silver were nationalized, the only way to preserve them would be by hiding them (and how do you plan on cashing in on the investment down the road?).
Very good point, this is why the Chinese are said to be tied at the hip to the dollar. I think it was Ben Franklin who said that "compound interest" was the eighth wonder of the world. Perhaps he would have mentioned "reserve currency" instead had the IMF and Bretton Woods existed at the time. Together with all that makes America and our economy great, the benefit of having the dollar as the reserve currency is incalculable. The ability to export our inflation is one of many. Regards, Bluesboy65
