Hello ild, <<how much truth is in this story #reply-19343792 ?>> ... I think as an indication of potential, once the trading (buying + SELLING BACK) mechanism is in place, as we have in Hong Kong, where we have within our premier customer bank wrap account a paper gold ledger (in units of tael, about 1.2 oz) that is accessible via phone, internet, and passbook, then the demand of 3,000 tons could be easily breached, because GOLD is then in fact MONEY, and recognized as such by LAW, and whichever bank offers the paper gold service will grow its customer base in relation to the non-conforming banks.
The Chinese, due to history, do not trust paper money, and had been accumulating USD due to lack of better alternatives, and now an alternative in the form of gold is starting to be offered, promoted, and facilitated.
In my view, the threat to gold is not competing currencies, but high real interest rate.
Chugs, Jay |
