Gold is and has been for thousands of years the best insurance against inflation, or deflation. I would much rather own gold than invest in government bonds, high-yield bonds or equities. With the uncertainty of whether deflation was to pass, it would only stimulate governments to print more money globally.
China is taking full advantage and has been buying as much gold as it can get its hands on. At last count gold imports from Hong Kong year to date was just over 1,113 tons, doubling from the previous year at this exact time last year.
Many experts are starting to blame those Western central banks, especially the Federal Reserve and the European Central Bank (ECB). Many analysts are pointing fingers that central bankers are desperate to salvage their fiat currencies and eliminate competition as "monetary authorities."
The domino effect is gold prices have deflated and putting China on a winning streak for buying gold at basement bargain prices. Many analysts also believe that central banks are manipulating the price of gold as a trade off with China, for not unloading U.S. Treasury Securities and other government debt.
It will only be a matter of time before the Chinese government's expanding the role of the Renminbi within international markets. This will certainly bring an end to the U.S. dollar being the choice as the currency to be used by international markets for goods.
In an article written by Vronsky via Gold Eagle, he illustrates this example. If gold price ran parallel with China's total foreign reserves, then the yellow metal today should be approximate $5,162 per ounce. Today's severely discounted gold price is a blessing for those who know financial history and who are patient, as in character with China's historical culture. Read the Full Article
This is a must watch, to understand why this is happening!
All the Best,
Joseph F. Botelho One Gram at a Time
Joseph BotelhoFollow @jfbmarketing
— Joseph Botelho (@jfbmarketing) October 25, 2013
1 comment:
Investing at any time is complicated, for many reasons that are just not logical. Investing has drastically changed, so many UN-controllable issues occur without warning, wiping out your investment. The Central Banks, along with governments globally control, and need to have the fiat currency alive. The bandage on this problem, is what it is a bandage, that eventually comes to an end.
No expert in this field, but l do understand the most important factor an investors looks at, his (ROI) return on investment, only number that counts, makes or breaks your efforts.
This is what l have been following for the last three years, write a great deal on this topic, its an asset, gold. You can not reproduce it, so it has value on the formula of demand and supply. Gold mines are not producing gold as they once did, read my blog on why this strategy is the key with precious metals.
You be shocked by what is also happening, the manipulation of gold by the central banks, what a surprise. Just understand what happened on October 11th, when the market halted trading for a period of time... This has never occurred..
This is what l believe in, why it works, and why China keeps a low profile on this strategy why would they wake up country's to share in their winnings???... China is a very progressive, perhaps aggressive once they make a decision. They have!!!!
2014, will be an "interesting year globally," who do you trust when you invest????
All the Best,
Joseph F. Botelho
P.S. If you have an interest in this topic you know what to do, have a great weekend...
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