Gold backed Chinese currency Well, not sure but I reads convincing article on gold consumption and backing chinese currency...sort of a reverse direction to create a gold standard. I guess it's possible. China's economy is large enough but currently their currency isn't recognized in international trading. If they backed the yuan with gold this would sink the U.S. dollar and give china's currency a boost especially if it's backed. The process is already taking place.
- trade swaps u.s. debt for gold people that believe the u.s. will never go down will swap interest backed securities in lieu of gold...so paper for gold transaction
- consume and produce gold..china is doing both ! This is estimated to be 4000 to 6000 tons. If they continue for another 2 years they could hit 10,000 tons or $ roughly $ 400000000000 in value at 1250 per ounce.
- Keep consuming.
This reversal of u.s. fortune will create a new gold standard.
Well maybe...who knows....? bottom yet ? maybe ? Watch china's buying patterns.
GLTA