The timing of this article is very interesting: we have the upcoming Swiss Gold Referendum, China buys record amount of Gold and there are more voices about US Dollar losing its reserve currency status every day. Nobody knows the future, but it is important to note: "... that most of Chinese economist think that the price of gold should be $ 2,400 / once."
Koos Jansen: The Chinese Precious Metals Market Is On Fire.
The China Money Report:
Dan Collins
CMR
“Gold going to $7,000″, an article today in the Chinese media isgoing viral and one of the most viewed articles in the financialpress. The article references American Jim Rickards and his conceptof comparing inflation-adjusted gold prices. Most Chinese economiststhink that the price of gold should be approximately $ 2,400 / ounce,instead of the current $ 1,235.The article references estimates by Jim Rickard’s that if Central bankshad to to use gold to support its currency, then the price of gold willgo to $ 7,000/ oz. That only includes the printing that has been donealready, not the continuous printing of fiat currency that continuesunabated by Central banks all over the world.Todays volatile financial markets are a warning that todays assets haveno actual real underpinning. There is no insurance. Gold stands as thebulwark.Although the U.S. Dollar is the reserve currency of the world today,gold is the key to the new millennium of global trade balances.The Dollar is losing its reserve status, holdings by Central Banks havebeen going down for decades. Meanwhile, Chinese RMB holdings areskyrocketing across the globe. The U.S. has been running trade deficitsfor 30 years, when the Dollars start to go back onshore their will be aglobal puke of the financial system and inflation levels the U.S. has notseen in its entire history.Are you ready? China Money Report."
