James Lewis

Could China Propel Gold to $2,000?

I'm with Huang Thomas. When the world realises the USD is still the most MAJOR (note MAJOR) 'disciplined currency with respects to issuance and printing'. There will be a rush to sell gold at these high prices. Yes we can go higher, but not the rediculous heights the gold bugs predict as a result of the combustion of the USA.

China does not want gold to become exceptionally popular or it will undermine the issuance of the RMB. No government wants gold to be too popular. Also lets be clear, the chinese government would not in a billion, trillion years - confiscate gold if it undermined their power of issuance of RMB. Therefore they will be very cautious of promotion gold too much.

Selling gold to its citizens, to get their money out of savings.
Thats a more accurate assessment.