Dollar Collapse, China Gold Rush, Gold Price Rise To Infinity!
Gold standard in a near future.
China is making an even bigger move toward gold in reaction to money printing around the world.. People's Bank of China official Zhang Jianhua declared: "No asset is safe now. The only choice to hedge risks is to hold hard currency - gold"..
Zhang, the bank's research director, recommended buying the dips: "The Chinese government should not only be cautious of the imported risk caused by rising global inflation, but also further optimize its foreign-exchange portfolio and purchase gold assets when the gold price shows a favorable fluctuation"..
China's $3.2 trillion in foreign reserves are currently invested one-third in U.S. treasuries 20 percent in euro-denominated assets and only 1.8 percent in gold, according to China Daily. China has one of the world's biggest gold reserves at least at 1,000 tons...Then followed by Germany, India and the rest of the world.
The fear of dollar collapse lead to holding currencies that back by gold. When all fiat monies become worthless, every governments prefer gold as stable valuation.
Beijing is considering backing the yuan with gold and ditching the USD world reserve currency. What outcome will this have on the worldwide economy?