China Buying Gold, Challenges Dollar

Discussion in 'Wall St. News' started by DemZad, Sep 15, 2011.

  1. Sept. 13--China is shifting some of its massive foreign holdings into gold and away from the US dollar, undermining the dollar's role as the world's reserve currency, accoding to a recently released WikiLeaks cable.

    "They [the US and Europe] 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," stated the 2009 cable, quoting Chinese Radio International. "China's increased gold reserves will thus act as a model and lead other countries towards reserving more gold."
  2. The Chinese will buy whatever they want when they want. With gold possibly hitting a top lately you never know. I think the chinese would be more interested investing in an African infrastructure build out then commodities hoarding. They have been show to have a liking to rare earth elements and strategic industrial metals They already have control of the USD buy the mere fact of a currency peg.

    Welcome to Neo Feudalism,

  3. You may have a valid point:

    For example, the DR Congo in 2008 and Guinea in late 2009 signed preliminary $9bn and $7bn mining-for-infrastructure contracts. In Ethiopia, the Chinese are building roads, hydroelectric dams and funding a $1.5bn expansion of state-owned mobile telephone networks. In total, Ethiopia has received over $4bn in credit lines and tied bilateral aid. In Cameroon, China offered to build a $800m hydroelectric dam aft era British firm pulled out, and in Ghana, a new foreign ministry building in Accra.
  4. interesting to note that china is offering credit to developing countries for specific projects whereas the us is just giving out aid to be used in ways that are not thoroughly documented :/