Chinese culture values stuff (gold).
I value human productivity (stocks).
I win, they lose.
Good. Now they can start paying back the rest of the world for their COVID crime.
Total B.S. about spooking fears about the dollar.
I’m sure there’s no reason for questioning...
https://www.mining.com/web/chinese-jeweler-probed-for-using-fake-gold-bars-for-loans/
When it is time, will anybody notice.
The value of a fiat currency is the efforts or risks put into acquiring it today, yesterdays earnings are just dragged along like ball 1 score while playing ball 2. I am contractually obligated to pay my loans in dollars, that is never going to change. Never would enter into a contract that would require gold, except for a ring on my finger and miligrams for ICs, gold is like the stuff in my smoke detector, a oddity.
Sorry folks, I don’t get it. I’ve got some I’ve gathered at bargain prices over the years. But, it’s just a part of the big picture.
It’s only good if you are willing to exchange it with somebody who wants it for something that you want.
Ya can’t eat it.
Won’t ease a cold or a headache.
Won’t keep you warm.
Won’t fight off a bear, or a wolf, or a snake.
Would rather have Lead, Seeds, Land, Water, Livestock.
You can keep your dusty blocks of shiny metal.
That train left the station a century ago.
For China to challenge the dollar’s dominance it would have to demonstrate it has a stable economy which it does not have.
Furthermore it has been a long time since wealth was measured solely in gold. America is rich in natural resources which also count as wealth.
Nobody is going to bank of China which is still a quasi-third world country. A lot of wealthy Chinese are trying to move their money out of the country and most are choosing America as their landing spot due to our financial stability. Yes; we have a lot of debt but so does everybody else...
For China to challenge the dollar’s dominance it would have to demonstrate it has a stable economy which it does not have.
Furthermore it has been a long time since wealth was measured solely in gold. America is rich in natural resources which also count as wealth.
Nobody is going to bank of China which is still a quasi-third world country. A lot of wealthy Chinese are trying to move their money out of the country and most are choosing America as their landing spot due to our financial stability. Yes; we have a lot of debt but so does everybody else...
It's a global poker game, with nations as players. It behooves players to minimize their gold holdings until the endgame, when they finally show their cards.
China may have 25k tons, but 8k tons is only the card that the US is ***showing*** now. Whatever China really has, I'll posit that the USA has more.
As one point, and only a small point because there are other larger ones, the US found a good deal of gold in Iraq that's now gone (is that a main reason we were in Iraq in the first place? Perhaps.). That missing Iraq gold will eventually turn up when the poker cards are laid down on the table.
Well, since the dollar is based on......what was that again? Thin air?
There are at least four uncertainty caveats in the first sentence: undeclared, potentially, could and expert. That leaves very little to rely upon.
$15 Trillion in holdings ain’t enough and the dollar isn’t based on gold anyway
25000 tons of gold would barely put a dent in our national debt.
They are preparing to build the Tomb of Emperor Xi
Approximately $358 billion
25,000 tons of gold is worth approximately $358 billion based on the current market price of gold.
CalculateMe.com
We saw what Putins huge stash of gold was for.
Yes, China has huge reserves of gold. Yes, China has discovered a new very large gold deposit (it is deep) but economic to mine at high world gold prices. And after Belt and Rail, many countries in South/Central America, Africa, Asia are in debt beyond their ability to repay Chinese debt.
So what is the likely end game?
Well China can make their currency a “gold backed” CNY or Yuan into the world reserve currency.
However, what would happen economically? First the value of the Yuan would skyrocket compared to other world currencies. The price of gold would also skyrocket. That would harm Chinese exports and make their products less competitive in world markets.
So what does that mean for “workers” in China? It means a lot of unemployment and closing of non robotic manufacturing plants. That could topple the Chinese government and plunge China into revolution or civil war.
For a short time, China could force countries to purchase its good by threatening declare their national sovereign debts in default. Similarly, since China has purchased so many companies in foreign countries they could threaten closure and unemployment in those companies.
So, I think that while China may eventually push to become the world reserve currency, I also think that if they do, they have to be extremely careful or they will destroy themselves.
Now, don't get me started on Crypto currencies and how they may become the world reserve currency. That is something some feel we are headed for and could block China's ability to use gold at an economic weapon.
“Many in the industry state China’s Gold holdings are at least 25,000 tons- “
Name two ...