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Gold, Renminbi and the Gold Standard September 28, 2013

Posted by hslu in China, Economics, Global Affair, Gold.
Tags: , , , , , , , ,
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It is rumored that the Chinese government has accumulated more than 7,000 tons of gold since 2009. the central government also encourages Chinese citizens buy gold on the open market. Panda gold coins has been a popular collectors’ item since 1982. Ads like this one are very common at gold and jewelry stores in Shanghai.

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Wouldn’t you like some of those gold pieces on you?

Why the rapid pace of gold purchase on the open market? 

The Bank of China probably doesn’t like what Bernanke has been doing since 2008, I guess.

But, this is the obvious answer.  I wonder that is there a hidden agenda from the Chinese government?

Some reports speculated that the pace of gold purchase will continue and some even linked Renminbi with the gold standard as a way to fight inflation and teach America a lesson.

It is hard to know what the real game is.

Well, just so happens that Chinese has a saying for this situation:

“不知道中国的葫芦里到底卖的是什么药!”

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