Why Are The Chinese Suddenly Buying Gold Like Groceries?

Common Sense Commentary:

The present currency wars, which are raging across the world, between nations, in a devaluing race to the bottom, in order to be able to sell and export more of their goods overseas, is causing inflation around the world.  Inflation drives the value of currency's buying power down and the value of real property, including precious metals, up. The U.S. dollar, being the world's reserve currency since the end of WWII,  jerks other national currencies around like a big dog and a bunch of little dogs fighting over a piece of meat. The U.S. government policy of trying to keep the dollar in control, has, for the past few years been manipulating all markets, including the stock market, bond market, interest rates, foreign exchange and, of course the precious metals market. They make the dollar look stronger by constantly buying in and out of  "paper" gold and silver to keep it's price low. For that reason and others, like derivatives and High Frequency Trading programs, the average investor, though he exercise perfect due diligence, and buy the absolute best stock investment, can no longer count on winning in this rigged atmosphere. He is competing against HFT programs which buy and sell multi-millions of shares in seconds, in and out. That, in addition to the failed efforts of the Federal Reserve System's TARP and Quantitative Easing scam has convinced the Chinese to corner the world gold market. They have over a Trillion of our dollars which they received from us for a trillion dollar mountain of mostly junk we bought from them, and they are now using that trillion dollars to buy our gold, silver and other real assets.

For over a year now, the Chinese government and it's people are buying up more world gold than the total amount mined per year.  China mines more gold than any other nation but exports not one ounce.
It is thought by many experts in the field that the Chinese government, though unreported by them, now has more real (as opposed to paper) gold reserves than any other nation. When a survey, done on the streets of China last week, asking the people why they were buying so much gold their answers were quite interesting. Here are a few which are typical of the answers given. RB

#1 "Because Credit  does NOT equal Gold ..  they prefer 'wealth you can hold' "

#2 "I told my husband : do not keep any money in the bank...
He did not listen , so I took all my money out and bought Gold....
I will get the last laugh"

#3 "Chinese invented paper money and they know what happens to nations that spend more money than they have on wars and social benefits."

#4 "A wise man once said .. .'Anytime you can trade paper wealth for Gold is a good day' "

#5 "Americans laugh as they get our goods for their dollar.
We will get the last laugh as we trade their dollars for their Gold"

#6 "China has a long memory and a longer history ; The Federal Reserve is only 100 yrs. old".    etc. etc.


The two links below are two pictures taken in a gold shop, in Beijing, China, late last week by the uncle of a friend. RB

http://www.ingoldwetrust.ch/wp-content/uploads/Beijing-jewlery-store-14-02-2014-Yi-Zhang.jpg 



http://www.ingoldwetrust.ch/wp-content/uploads/Beijing-jewlery-store-14-02-2014-Yi-Zhang-2-527x705.jpg