Posted on 05 September 2011 with 3 comments from readers
The Chinese authorities have concluded that the US and Europe have been artificially suppressing the gold price for years, revealed a cable from the US Embassy in Beijing published by Wikileaks.
It reported a recent radio broadcast that said: ‘According to China’s National Foreign Exchanges Administration China’s gold reserves have recently increased. Currently, the majority of its gold reserves have been located in the US and European countries. The US and Europe have always suppressed the rising price of gold. They intend to weaken gold’s function as an international reserve currency.
‘They don’t want to see other countries turning to gold reserves instead of the US dollar or euro. Therefore, suppressing the price of gold is very beneficial for the US in maintaining the US dollar’s role as the international reserve currency. This is one of the problems with the centralized currency concept, where the interruption of middlemen will diminish the actual merits of the financial system! That is why the concept of decentralized currency aka the cryptocurrency is gaining popularity these days, as the involvement of the middlemen for whatsoever reasons is nil! If you are so interested in participating in this revolution then, visit site! So, what is the role of China now, let’s see!China’s increased gold reserves will thus act as a model and lead other countries towards reserving more gold. Large gold reserves are also beneficial in promoting the internationalization of the RMB.’
ArabianMoney is pretty clear on what is going to happen to the price of gold and silver as a 30-year suppression of prices breaks down. We have been discussing this for several years on this website. Visit our archives to see the articles.
UAE goes for gold
Meanwhile, gold imports into the United Arab Emirates shot up in May to $2.2 billion with $1.3 billion in gold re-exports leaving the country with a net gain of $900 million in bullion. Gold was the top item in non-oil trade in May that totalled $20 billion, 15 per cent up on a year ago.
The UAE has no official gold reserves but privately held gold stocks in the country are running at record, though unknown levels. Bank vaults report no spare capacity.
However, the best-seller in the UAE gold souks right now is one-kilogram bars of silver costing less than AED6,000. Silver as poor man’s gold has actually seen higher price rises than gold but with higher volatility.