Zero Hedge: 'A Sanctions-Evasion War-Chest Ahead Of Taiwan Invasion' - Why Is China Hoarding Gold Again?
A month ago, we confirmed the identity of the "mystery" gold-buyer who had been suddenly hording the precious metal in recent months.
Specifically, we identified China as the hidden whale buying the barbarous relic when all around them are decrying it's inflation-hedging help, remarking at the time that for China, the need to find an alternative to dollars, which dominate its reserves, has rarely been greater.
Tensions with the US have been high since measures taken against its semiconductor firms, while Russia’s invasion of Ukraine has demonstrated Washington’s willingness to sanction central bank reserves. In other words, now that the US has shown it is ready to weaponize the dollar, any USD reserves held by the Fed, Western banks or any other counterparty, could and will be promptly confiscated if China does something unpalatable... like invading Taiwan. Which is why China is desperately seeking money without counterparty risk. Here it has just two choices: crypto or gold. For now, it has picked the latter.
Read more ....
Update: China Extends Gold Buying With Fresh Flows to Central Bank (Bloomberg)
WNU Editor: For the past two years China has been on a buying spree for all commodities. Metals. Food. Oil. Just to name a few. So why not gold.
4 comments:
In order to feed the people due to sanctions if they invade Taiwan they need to stockpile food. They are in the process of doing it right now. Not really rocket science on what happens next.
It's going to be a super-clutch somewhere in the near future where powers will be spent and new rise.
Are they not happy with those precious metals and golds? Is it really necessary to exhange these precious metals eventually by invading taiwan. If I were them, come to think they were able to by without taiwan.
I have no clue, they cant win whatever they do.
But they are preparing and flexing for something..
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