Gold and China in the news

Discussion in 'Bullion Investing' started by danisanub, Sep 7, 2009.

  1. danisanub

    danisanub Finance Major

    It seems lately that there are a lot more stories in the news relating to bullion:

    http://www.bloomberg.com/apps/news?pid=newsarchive&sid=ajhlO0WbHd3o

    And this one is really interesting:
    http://www.telegraph.co.uk/finance/economics/6146957/China-alarmed-by-US-money-printing.html

    "If they keep printing money to buy bonds it will lead to inflation, and after a year or two the dollar will fall hard. Most of our foreign reserves are in US bonds and this is very difficult to change, so we will diversify incremental reserves into euros, yen, and other currencies," he said.
    China's reserves are more than – $2 trillion, the world's largest.
    "Gold is definitely an alternative, but when we buy, the price goes up. We have to do it carefully so as not to stimulate the markets," he added. The comments suggest that China has become the driving force in the gold market and can be counted on to
    buy whenever there is a price dip, putting a floor under any correction."


    Seems like gold is getting ready to soar, soar, soar
     
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  3. jaceravone

    jaceravone Member

    Don't the Chinese realize that we have coins to buy??? :p
     
  4. danisanub

    danisanub Finance Major

    haha yes, it's very rude of them. They need to wait until the FS coins are done ;)
     
  5. danisanub

    danisanub Finance Major

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