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"Rep. Kirk of Illinois leaks China’s plan to buy $80 billion worth of gold, to protect it’s massive foreign currency reserves from hyperinfaltion. China is particularily vulenrable to infaltion as governments around the world openly inflate their way out of the “Great Global Recession”.
this news may or may not be true, but i would not believe anything that mark kirk said on face value. mark kirk was a crooked GOP who voted for cap and trade. luckily, it looks like he is choosing not to run for the senate seat again. here are the other republicans who were willing to sell our country out
Bono Mack (CA) (202) 225-5330
Castle (DE) (202) 225-4165
Lance (NJ) (202) 225-5361
LoBiondo (NJ) (202) 225-6572
McHugh (NY) (202) 225-4611
Reichert (WA) (202) 225-7761
Smith (NJ) (202) 225-3765
Congrats, congress people, you helped the democrats pass a junk science-based, massive national energy tax and you need to go!
to get back on track, china may very well be buying gold but i think that they consider their gold holdings, which account for about 1.6 percent of its reserves, too small.
That is a pretty big statement if it is true about China buying that much gold. At current prices that would be more gold that the entire mining output in 2008....for the entire globe.
That is a pretty big statement if it is true about China buying that much gold. At current prices that would be more gold that the entire mining output in 2008....for the entire globe.
They have been talking about raising their reserves for some time now. I dont think they plan on buying mined gold. My guess is that they are gunning for that IMF gold that is being released into the market, so for investment purposes, it may be a wash because it will not be decreasing the supply on the market. If anything, it will merely prevent a fall in gold prices.
snippet:
"Rep. Kirk of Illinois leaks China’s plan to buy $80 billion worth of gold, to protect it’s massive foreign currency reserves from hyperinfaltion. China is particularily vulenrable to infaltion as governments around the world openly inflate their way out of the “Great Global Recession”.
This does not make much sense. Buying gold would not protect them from losing money from their dollar, etc reverses.
I'd also imagine Chinese economists are not too worried about inflation..
They have been talking about raising their reserves for some time now. I dont think they plan on buying mined gold. My guess is that they are gunning for that IMF gold that is being released into the market, so for investment purposes, it may be a wash because it will not be decreasing the supply on the market. If anything, it will merely prevent a fall in gold prices.
The Obama administration pushed a bill through the U.S. House of Representatives approving $106 billion in supplemental funding, primarily for the Iraq and Afghanistan 'security' efforts, but attached to it was also an expanded credit facility for the International Monetary Fund (IMF) of a massive $108 billion which included an agreement to allow U.S. members of the IMF Board to agree to the proposed $13 billion sale of 400 tons of IMF gold to shore up its finances.
They have been talking about raising their reserves for some time now. I dont think they plan on buying mined gold. My guess is that they are gunning for that IMF gold that is being released into the market, so for investment purposes, it may be a wash because it will not be decreasing the supply on the market. If anything, it will merely prevent a fall in gold prices.
I agree, the likely source will be IMF or other central bank gold bullion. I was just trying to use that to highlight the sheer size of that sort of purchase.
The Obama administration pushed a bill through the U.S. House of Representatives approving $106 billion in supplemental funding, primarily for the Iraq and Afghanistan 'security' efforts, but attached to it was also an expanded credit facility for the International Monetary Fund (IMF) of a massive $108 billion which included an agreement to allow U.S. members of the IMF Board to agree to the proposed $13 billion sale of 400 tons of IMF gold to shore up its finances.
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Thanks. This was in the news back in February, and I forgot the exact numbers. If they are only selling 400 tons, I have no idea where China expects to get the other 600 tons. Over time, it is possible I guess, but it will drive up prices. China, along with Russia (or maybe it was Brazil?), has also proposed a gold backed international currency. If this is their goal, it would be wise for them to shore up their reserves, especially considering their economy. They still fall FAR behind the US in gold reserves.
Thanks. This was in the news back in February, and I forgot the exact numbers. If they are only selling 400 tons, I have no idea where China expects to get the other 600 tons. Over time, it is possible I guess, but it will drive up prices.
I don't know if you've heard of the "gold parties" that have become common lately, but the rumor mill is saying that many of the companies which host them have ties to China.
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