Post by
MaterialsMan on Nov 28, 2024 8:57pm
If it's true
If news that Chinese banks are now blocking the purchase of physical gold for investment purposes by private individuals is accurate, it should IMO be raising some eyebrows.
According to the news article (Kitco), the reason has to do with the recent volatility and subsequent risk factor. That, I think is a total falsehood.
Nothing of this nature happens in China without gov't approval. If it's true, then something is afoot.
If I were to speculate, I'd say that Chinese citizen's have begun buying physical gold in huge quantities from the local banks where they have money on deposit. It's being done for obvious reasons, and those in authority are putting a stop to it.
It would be similar to a serious run on the banks here. If it were to be perceived as being a problem, our governments would bring it to a halt in a hurry. Of course, our banks don't sell physical gold to depositors here. That would be tatamount to having a limited gold standard.
I think the Chinese are losing confidence in their own currency, and they are buying gold at the bank as a safety measure. They are probably buying more physical gold than the banks have to sell. Hence the halt.
If that's how the system was set up, it would be hard to believe but what do I know.
Comment by
REPS346 on Nov 29, 2024 9:22am
https://crsreports.congress.gov/product/pdf/IF/IF11707............59% of global countries hold US currency as there security....staggering amount.....
Comment by
Symbiotic on Nov 29, 2024 9:33am
Yes, but staggering amounts are not long term proof. Hockey stick charts show staggering amounts as well, but don't usually denote long term prospects.