The Chinese Gov’t wants the Chinese to buy gold. However, prices are so high that the Gov’t itself cannot buy that much unless they cash in US Treasuries and take a loss. So, the next best thing is to encourage their citizens to buy gold. It may be a smart move, but if the Chinese Gov’t were in a position to buy the gold themselves, they would.
China have a trade surplus with US every month. They could use those USD they accumulated, not in t-bills to buy gold themselves
Yes, but US treasuries at are at an all time high. The Chinese are selling no matter what they say and they are sellin to the US Government I might add. The only buyers in town. We are screwed.