Say what you will about Wikileaks, but they’ve apparently leaked evidence that China is buying up tons of gold in order to weaken the dollar even further. Those of us who keep up with gold know that a gold standard is, hands down, the best weapon against the insanity of fiat currency. Apparently, even China is beginning to understand this.
The cable released by Wikileaks is entitled: “China increases its gold reserves in order to kill two birds with one stone”. Fitting. But that’s not the real story — the real story is that China and the rest of the world are starting to realize that Western governments have been surpressing the price of gold for political reasons. Read more:
“According to China’s National Foreign Exchanges Administration China ‘s gold reserves have recently increased. Currently, the majority of its gold reserves have been located in the U.S. and European countries. The U.S. and Europe have always suppressed the rising price of gold. They intend to weaken gold’s function as an international reserve currency. They don’t want to see other countries turning to gold reserves instead of the U.S. dollar or Euro. Therefore, suppressing the price of gold is very beneficial for the U.S. in maintaining the U.S. dollar’s role as the international reserve currency. China’s increased gold reserves will thus act as a model and lead other countries towards reserving more gold. Large gold reserves are also beneficial in promoting the internationalization of the RMB.”
You can read even more at Zero Hedge. I’ll be writing more on this over the next few weeks. This is one of those topics you absolutely should keep an I on.
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