Tuesday, January 15, 2013

China Boosts Gold Purchases Over Dollar Collapse Fears

China was the world's largest amount of U.S. debt, more than any other nation. However, things have changed drastically. China has changed the investment strategies, including moving to a majority stake in the dollar-dominated assets and restructuring of assets into gold. Clearly this is not a financial genius to figure out the logic of China's important exit strategy.


While the U.S. dollar is still uncertainty over the euro king today, what would happen if the United States note that the level of debt compared to more than Greece? Although still the largest foreign holder of dollar reserves, China is clearly aware how exposed to the vicissitudes of the economy, which is a decline in the national reserve. Currently, the U.S. Treasury within the largest market bubble in history.


An important means of protection, such as diversification, but the bulk of the assets to be committed U.S. Treasury? Where else can one run to safety? Swiss franc used to be an excellent hedge. However, the franc is now pegged to stop or slow recognition, because things have gotten wildly out of control.


If you happen to be in India and holds the place of rupees worth of gold, you're the only one name. Because of the massive depreciation of the Indian rupee, when measured against gold record highs. Despite the fact that hundreds of dollars less than the high dollar, restore the last quarter of 2011. The Chinese have also acquired these prices.


There are only a few true haven assets remaining in the world today. There is a growing amount of manipulation going on in the financial markets through central banks all over the world. The reason is that the central banks of the utmost control over the global supply of paper money. Gold and silver prices also capable of manipulating and suppressing the direct involvement of the bullion banks conspiracy tactics.


However, because of the physical demand of precious metals increases, the global market manipulations further relaxed, and finally come to an end. Since the end of the manipulators of the economy will not be able to counter the pressure of great physical precious metals held outside control. Thus, the global manipulation and organizations behind them implode.


Imagine the U.S. economy and how it compared to the same base rate set at 6 percent Italy. The values ​​of the asset classes, ranging from equities, bonds or real estate, everyone should be discarded. At this point, a dangerous deflationary depression is ca. However, no one is to take seriously look into this situation, a scenario that could happen realistically. Global economies, sat waiting for life-support because of the global financial crisis began. Although requiring further life-sustaining economies continue to succeed.


The Chinese have been systematically and intelligently handling of gold and silver in the coffers of the government with the vision that tomorrow may bring serious economic event. Today, buying physical gold and silver, that acts as an insurance policy, as opposed to the worst case scenario, the economic troubles tomorrow.


The severity of the crisis in the euro zone sovereign debt manhandled catastrophic problem today. It can be considered the best, the rest of the nation and people to learn, and when they finally move forward. America is not far to Europe, it is actually a worse state and soon the United States will be similar, but more trouble. Follow in the footsteps of China, to invest in precious metals today, to ensure that the property tomorrow.

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