With precious metals taking a bashing many are wondering about the gold trading price 2012. However I believe the actions of one nation in particular are very telling!
A director affiliated with the People’s Bank of China recently said “No asset is safe now. The only choice to hedge risks is to hold hard currency – gold.”
No doubt one reason may be the intention of the Obama administration’s to double US exports between 2010 & 2015. And as the currency war continues this can only happen through continued dollar devaluation (Quantative Easing – money printing)
The problem for the man on the street is gold and silver are recording new lows. Mistakenly causing many to believe them to be a poor “bet”. As so in the West the illusion of paper money and currency remains intact! However as we continue to feel the effects of this debasement the gold trading price 2012 is likely to see new highs as people flock to gold in the coming year.
The GoldMoney News Desk discuss why the Gold Rush is still on in China
According to Reuters, Chinese regulators have stated that the Shanghai Gold Exchange and the Shanghai Futures Exchange are enough to meet investor demand for spot gold and futures trading. In the words of the People’s Bank of China, the Ministry of Public Security and other regulators: “No local authority, institution or individual is allowed to set up gold exchanges.” They cite lax management and evidence of illegality as reasons for the crackdown.
However, other news from China is more bullish for the yellow metal. In particular, comments reported in China Daily from a senior official at the People’s Bank of China (PBC) – the country’s central bank – indicating that the Chinese government should continue acquiring gold as a means of diversifying its foreign exchange reserves, as a means of moving away from US dollar and euro denominated assets. US Treasuries currently make up one third of the PBC’s assets, with euro assets around 20% of its assets. The Bank also holds 1,054 tonnes of gold, according to the latest data from the World Gold Council…”
No doubt how China handles their Gold acquisition will effect the gold trading price 2012