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Friday, April 29, 2011

China May Buy $1 TRILLION of Gold: Bloomberg

Bloomberg today quoted an analyst who says China may use part of their $3 trillion in foreign reserves to buy $1 trillion dollars worth of gold.
China has been diversifying away from the dollar, and into commodities and other, sounder currencies for years now. Such a large amount would signal a sharp rebuke to the dollar's status as reserve currency, to say the least.
Bloomberg:
China’s Gold Reserves

China, which has just 1.6 percent of its reserves in gold, may invest more than $1 trillion in bullion, [Michael Pento of Euro Pacific Capital] said. “China wants to be an international player, and they need to own more gold than they currently have.”
...“China is out to have more gold than America, and Russia is aspiring to the same,” [Robert] McEwen, [the chief executive officer of producer U.S. Gold Corp] said yesterday in an interview in New York. “When you have debt, you don’t have a lot of flexibility. China wants to show its currency has more backing than the U.S.

...China, with more than $3 trillion in foreign-currency reserves, plans to set up new funds to invest in precious metals, Century Weekly reported this week. Russia purchased 8 tons of gold in the first quarter.
Gold and silver prices may dip for a little while, and bears will declare the bubble popped (after a one-week correction, usually). Then the uptrend will continue, intact. And they'll say, "bubble! bubble bubble bubble bubble bubble!", again.
And gold bugs will be laughing all the way to the vault.
More Here..

2 comments:

  1. "I will enjoy watching US females and their feminized male slaves wonder "what happened" when they wake up one day and realize that they have nothing...."

    On that day the husband will be in the store buying his 300 pound wife tampons while she sits at home watching Maury drinking diet pepsi and reading the latest Biggest Loser weight loss tips in People magazine.

    He'll see about 1,000 people come inside taking everything and smashing shit. At that moment he'll look at the box of tampons and then ponder to himself, "I wonder what it will feel like to shove one of these up my ass..."

    This is end game you know? As Abe Lincoln put it, "A nation full of men without balls is a nation full of vaginas. A house full of vaginas cannot get things done."

    Something like that.

    ReplyDelete
  2. Best Lincoln quote I've ever heard!

    ReplyDelete

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