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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 368.31+0.6%Nov 7 4:00 PM EST
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To: bull_dozer who wrote (196009)2/9/2023 10:18:10 AM
From: bull_dozer  Read Replies (3) of 217634
 
China Buying Gold for a Very Important Reason

Of course, the Goldbugs always misinterpret a rally in gold. The buying coming from China is in preparation for war – not bullish gold for the sake of gold. I have warned that if war was coming, then you will see China start to sell off US Treasuries. You certainly do not fund your adversary’s war against yourself.

China was buying aggressively during January, but they have backed off slightly. January was simply the standard 3-month reaction. The strong gold buying from China corresponded to China’s accelerated selling of U.S. Treasuries.

China is not buying gold because they think it will rally. It is perfectly fine if the price declines and just consolidates. They know war is coming and they can no longer maintain their reserves in dollars, euros, or yen no less than anyone else in the West – it all must go! Gold offers a non-political affiliation – neutrality. This is not buying gold as if it were an investment. We have completely different motives going on. Our own model warns that by 2032, there will be no United States acting as the reserve currency.

armstrongeconomics.com
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