I pointed out recently that China is moving away from US Treasuries and acquiring tons of gold (literally). Now China has shown their hand. From Zerohedge:
"...the China Youth Daily quoted State Council advisor Ji as saying that a team of experts from Beijing and Shanghai have set up a "task force" last year to consider growing China's gold reserves. "We suggested that China's gold reserves should reach 6,000 tons in the next 3-5 years and perhaps 10,000 tons in 8-10 years," the paper quoted him."
- China needs to add to its gold reserves to ensure national economic and financial safety, promote yuan globalization and as a hedge against foreign- reserve risks, Gao Wei, an official from the Department of International Economic Affairs of Ministry of Foreign Affairs, writes in a commentary in the China Securities Journal today.
- While gold prices are currently near record highs, China can build its reserves by buying low and selling high amid the short-term volatility, Gao writes in newspaper
- China’s gold reserve is “too small”, Gao says.
Yuan globalization, backed by gold. China sees two things happening:
- The US is self-destructing economically but is getting away with "murder" because the USD is the global reserve currency (for the moment) and is still backed, as far as we know, by the world's largest gold hoard.
- China is preparing to fill the vacuum left by the US when the dollar collapses or fades to obscurity by backing their own currency either implicitly or explicitly with gold.