China to report gold reserves of 5,000 tonnes next year says Jim RickardsPosted on 27 July 2013 with no comments from readers
China will shock the world with an announcement that it has accumulated 5,000 tonnes of gold next April, according to Jim Rickards, the author and hedge fund manager who addressed the last-ever Agora Financial Investment Symposium in Vancouver this week.
He told Agora’s flagship publication The Daily Reckoning: ‘I’ve spoken to a number of people who are very close to the physical market, I’ve done my own investigations, etc. Every time I have an estimate and try to verify it, what I get back is that I’m wrong on the low side.’
His prediction is that come April 2014, China will report gold reserves of 5,000 tonnes. This will send the price of gold spinning upwards, which is why the Chinese have done this secretly of course and in collusion with the bullion banks most probably.
He continues: ‘That should be an earthquake. Because even the gold deniers, the gold doubters, are going to have to sit up and take notice. Either the Chinese are dopes, which they’re not, or people will start to get gold, which I think they will.’
China will then command a seat on the top table of the central banks when it comes to laying out a future strategy that includes a gold-backed IMF super currency for which it has made no secret about its support. Mr. Rickards notes a new future awaits…
‘The world of $4,000 gold is the world of $400 oil, $100 silver, higher prices for copper, corn, wheat and everything else. In other words, it’s a world of very high inflation in which the value of your retirement funds and your annuities, etc., have been wiped out.
‘Buy your gold at current levels — $1,200, $1,250 — and ride the wave up to these much higher levels, $4,000-5,000 an ounce, and then assess the situation.
‘Be nimble. I don’t think you can just write a game plan today and say here’s the plan and just follow it step by step. That’s nonsense. You have to be nimble, you have to be following developments, you have to be prepared to change your mind based on new news.’
Gold is cheap. Buy it now and ignore the US stock market. That was also ArabianMoney’s takeaway from Vancouver this year. Agora editor Byron King’s top tip was silver. Conference star Rick Rule thinks gold juniors have hit the bottom.