As more and more around the world realize that Amercia amassed all this debt since 2008 without selling an ounce of our gold, measures are being taken by China and others to acquire mass quantities of the yellow metal.
A recent comment made by a Chinese official was caught by an anonymous source.
“Increasing gold reserve at the time of prices dip is the strategy of internationalizing the Yuan,”
China, made it known to the world in 2010, that they would add a considerable amount of gold to their reserves in the coming years. Currently, Chinese gold reserves are just under 1,200 tons, and they are going after 10,000 tons.
Gold will be at $1,500/oz. in no time!
With China being the largest holder of US debt, they are now taking precautions to preserve their wealth. A stable currency is the ultimate goal and the only way to do that is to increase the countries gold and silver reserves. They have also been increasing the use of the yuan for international trade so that they do not have such a reliance on the US$ to determine overall value.
Keep in mind that the Chinese new year is usually a driver for higher gold prices, and China was selling gold in front of the holiday. The metals were correcting before the unrest in Egypt began. They could of very well have went to lower levels had the unrest not happened, as this is what is currently driving precious metals higher. Dropping the metals lower would have and IS allowing China to buy more on a dip.
Just looking at the increase from 2009 to 2010 is astounding. If the pattern continues as such, 45 tons for the first 10 months of 2009 to 209 tons in the first ten months of 2010, Chinese reserves will drive gold prices to highs that many have predicted, but, have been considered crazy for saying aloud.