Chinese govt advise gold buying – why? What is their plan?

Chinese govt advise gold buying – why? What is their plan? Let’s face it, why else would a govt want its people to save in gold? The Chinese govt have been advising the people of China to buy gold, even going so far as to produce television programmes explaining the benefits and logistics of doing so. As we know from experience, the ability to print paper, and credit, money by fiat is a privilege held dear by governments – not something they wish, or can generally afford, to let go of. The Chinese govt are not, generally, renowned for kindness to their population so there MUST be a payoff perceived by China for the future. I wonder if the Chinese govt are going to, at some point, allow minting of gold into high-value coins denominated in their currency. There is a precedent in coins such as the Panda Gold Coin. This one, from 1982 I think, has a face value of 500 yuan. A person who bought it at face value, when 1 oz of gold was only around 500 yuan, still has the nominal 500 yuan secured in the coin’s legal tender… but the 1 oz of gold is now worth close to 8000 yuan! Heads you hold your nominal value… tails you make a packet if gold goes up. Anyway, a massive conversion of citizen’s gold to legal tender would create a solid pm-backing for their currency financed by the savings of the population. It might also give them a real shot at taking the prize of reserve currency status from the dollar as it would increase the money supply – the liquidity available to handle demand for
Video Rating: 4 / 5



t4705mb6 says:

The British “Crown” (The LONDON CITY STATE) will confiscate your gold under the guise of the “Federal Reserve Bank” as they did in 1933. You will get about 10% (or less) than value. If you do NOT give your gold to the NWO they will arrest you. In the past the penalties were deemed harsh for “hording gold”. TEN YEARS! This time around it will be FAR worse! If you don’t give up your gold purchases you will be labeled a “terrorist”. The NWO can’t allow people owning REAL value all Willy Nelson!

favsncrap says:

@deandotdot BUT at the same time will those that have been treated so poor;y / or died / old age ever see the work of their hands? probably not … Atleast in the west we have an average ok existence…

MrMrBilko says:

very interesting mate cheers for posting your ideas.personally I think you make a very important point that makes total sense. If the Chinese government came out in the open with this type of idea in the future I wonder whether it would make Gold price sky rocket or plummet.

UnitedKorean says:

Looks like it won’t be long before North Korea starts to bully and shit on US with China as their on their side as secret sponsor. That will be fun to watch. They may place embargo and sanctions on USA and blockade it from free trade (just the kind of things US is doing to them right now). US made too many enemies in the world… When a lion loses its teeth and claws… do you know what happens? All the hienas come out of woodwork and encircle the lonely old lion for a payback time.

Cyrus255 says:

Besides, the “officially communist” zones of China has a top corporate tax rate of 25% (and 0% in the “capitalist” zone of HK). Compare that to the “officially capitalist” USA which has an average corporate tax rate when you add in states of 38.2%, the HIGHEST in the developed world.

Cyrus255 says:

Glad I moved to China 2 years ago and fled the USA.

It was the best decision ever. You don’t have to worry about communist control in the special economic zones or in the HK administrative region. It has a 0% corporate tax. But be prepared to find backup citizenship as the USA hunts down all freedom lovers around the globe.

harrynking777 says:

This idea wouldn’t work because when somebody sold something he would want payment in the physical gold and not in the paper. The paper currency would then lose value so that some people would accept more of the paper in place of the gold.

999klondike says:

I’m speaking from bias, as I don’t trust the Chinese govt. I think it simply could be that they want their citizens to buy as much gold as possible, then confiscate it later, replace it with fiat $, and corner the world market on gold. FDR did it in America in the 30’s. They had an IRS agent go to every person’s bank security box and replace their gold with fiat money. That’s why gold isn’t even the safest haven people think it is. One word from Obama and everyone’s gold is illiegal.

epw0003 says:

I just cashed my payroll check today at a local currency exchange and was given $8 in $1 coins. I wonder if there is a trend starting to get away from fiat currency?

kewlkarthi89 says:

Indians always invest in gold …. U can always see Indians wearin gold ornaments, its a fashion followed frm thousands of years before ….

SethVandenberg says:

@tomoeDave Economists of every flavor believe they have ” The Answer ” < That isn't directed at you. My understanding is China wants to be the world reserve currency. If this is the case, as with all central banks, they control the quantity of currency in circulation. Although there would be a doubling, it would not lead to inflation. Initially my kilo bar is exchanged for legal tender gold coin or paper INSTANTLY redeemable next month for an = amt in legal gold coin.

tomoeDave says:

I think you are mistaken in thinking that minting gold currency that circulates in addition to the currency it’s backed by somehow would not create inflation. More money in circulation = inflation. You’d see the price of 1 oz of gold go up relative to yuan. Can’t make more gold, so the gold buying power probably wouldn’t change, but the yuan would lose value. It’s more typical in a gold standard that every unit is available *either* as gold *or* as paper. In your setup, the money supply doubles.

9dark96angel says:

to communists their gold is their population, the richer population becomes the richer government is. as for example they enforced child labor to win the worlds economy so now they all can enjoy it, so eventually their economy will go down, and to keep population from going back to old days when it happens, china government will start buying gold from people for cheep, gold will be then reproduced for new inventions like for robots micro cheeps and so on, which will start new Chinese economy.

mortalisk says:

Perhaps the chinese govt. can see, like any resonable person, that fiat money is doomed, and want to come out as the good guys who gave good advice before the crash.

throwerofturds says:

i wonder if the chinese will be so bad as the americans in invading countries and sticking their noses in other peoples business .i suspect that they will be the same but maybe we will never know . it is the future

throwerofturds says:

great video ! i think the chinese would love it if the renmimbi was the worlds reserve currency . looking back at the olymics we witnessed china going to extreme measures to impress the world . im sure that they think that the world would be very impressed if their currency became the leader of currencies .
it just makes good sense to have pools of inflation proof savings laying around the countryside . for a rainy-inflation day. i cannot fathom why the western leaders are not encouraging same




adeptusluminati says:

Uhhh, if you convert the 1oz gold coin into an acceptable currency format such as an 8,000 yuan panda coin, and then you spend that coin into the Chinese market, you have just doubled the Chinese money supply, so your arguement makes no sense.

Ulysses1174 says:

I had always thought there was more behind the Chinese govt’s encouragement but my thoughts went in the direction of outright confiscation. Your theory is much more elegant in that both parties make out and are happy in their trade. Add that to the Chiese minister announcing that they would cut their dollar reserves to 1/3rd current levels and we are caught in that Chinese curse “May you live in interesting times”

ForbiddenStallion says:

I’m not saying he’s right, but Mike Shedlock feels that no one wants to have the reserve currency. He makes an interesting argument.

lvbuckeye says:

@13elsauz learn to speak chinese.

lvbuckeye says:

the answer to the question why The Fed is averse to gold and silver is that gold and silver are honest money, and dishonest people are afraid of it.

Bernanke is a fucking idiot.

WILDCAT3345 says:


ArgentThug says:

Chinese people save money in banks, banks buy US bonds, from which when you sell you get dollars.
They are encouraging people to transfer their wealth from US dollars to gold so when dollars goes to shit China don’t go down with us.
The Chinese government can dump bonds at us but it’s more subtle if people invest in gold, slowly build up in the next 5-10 years. The result: we are fucked.

Lexman00 says:

China is the future. Down with the corrupt US empire and its zero-sum game known as capitalism.

BiasedEquilibrium says:

How is there ownership, if you don’t physically own it and it is in your possession? Gold has been confiscated by the government before, so that’s a little risky in my opinion.

t4705mb6 says:

The British “Crown” (The LONDON CITY STATE) will confiscate your gold under the guise of the “Federal Reserve Bank” as they did in 1933. You will get about 10% (or less) than value. If you do NOT give your gold to the NWO they will arrest you. In the past the penalties were deemed harsh for “hording gold”. TEN YEARS! This time around it will be FAR worse! If you don’t give up your gold purchases you will be labeled a “terrorist”. The NWO can’t allow people owning REAL value all Willy Nelson!

SuntzuMocro says:

I don’t trust this guy. Molester face.

jono8181 says:

@1942nuclear You are absolutely correct. The problem is that food is not durable enough, it spoils. Buy land to grow food. Save money to buy land by buying gold.

jono8181 says:

@j12torts All of which can be bought with gold when you need it.

j12torts says:

in en event of an economic collapse. tangible goods is the currency, pots pans, batteries, fuel so store up as much as u can. food is very important and clean water

SuperAaron969 says:

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with the bank you get a letter sorry the bank was bankrupt sorry no gold for you

westpointinvest says:

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buffett1000 says:

Buy sovereigns and Brittainias – they do not attract capital gains tax when you come to sell. Krugerrands do and gold bars do.

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muffmagnum says:

@TheGreekMan1981 “I also feel I am to smart to waste anymore time on you” – you spelled “too” wrong. irony?

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TheGreekMan1981 says:

@shermanr6 I just wanted to let you know that you spelled ” realize ” wrong. I also wanted to inform you that proper english doesn’t allow starting a sentence with the word ” but “; as you did. I have a degree from Texas Christian University and I understand economics in its full capacity. I do also think that name calling is childish, and the only people who resort to childish tactics are in fact……..CHILDISH.

I also feel I am to smart to waste anymore time on you. Good bye!

shermanr6 says:

@TheGreekMan1981 Name calling can only be positive??? Why can’t it be opinionated, biased, truthful, wrong right without being offended? Personally, I believe you only react to “name calling” if your mentality is that of a middle schooler. Regardless, you are correct in saying that gold prices will fall. That’s a given. But the real questions to ask are why they are SO high now and what causes prices to increase/decrease. When you understand this you’ll relaize that gold will be going up more.

TheGreekMan1981 says:

@shermanr6 I don’t mean any harm, but when you keep calling people idiot, it only makes you look like the idiot. Most grown men can have a coversation without middle school style name calling. I am not going to participate in this middle school coversation. I know that gold is going to fall and i am 100% certain of this. This has all happened before.

TheGreekMan1981 says:

@shermanr6 If that happens then I don’t see the world lasting much longer. As a Christian, I know that when there is a one world currency, there is a one world Gov’t…..then the end is near

shermanr6 says:

@TheGreekMan1981 Fools speak in absolutes and if you honestly believe the dollar is at the point of strengthening well then you just proved my point about you being an idiot. I just hope and pray for the sake of everyone that you are right but…

shermanr6 says:

What’s the difference between the end of the world and the start of a New World?

TheGreekMan1981 says:

@shermanr6 The Bible says, that the people cast their gold and silver in to the streets. So my final take is, if the fiat currency of the worlds fail…..I can rest assure that the end of the world will be a short time after. Either way, if the Gov’t currencies fail, this isn’t a world I’d want to live in. I hope you have 200 pounds of ammo to protect your minute gold. You will be a huge target. You should post your address here so they can find you quicker when they start to loot & kill

TheGreekMan1981 says:

@shermanr6 Also, let me add one more thing. If the U.S. dollar collapses it would create a worldwide panic. You would see money in every country start to fold. It will be the biggest domino effect in world history. You would wake up a week later and all paper currency in the WORLD WOULD BE WORTHLESS. The world Gov’t will not allow that to happen. If in fact, it does happen….One could only assume that the Bible would be correct in saying, even Gold and Silver would be WORTHLESS.

TheGreekMan1981 says:

@shermanr6 The U.S. Dollar will never collapse. The depreciation of the dollar has just about reached the point where it will start gaining strength again. Don’t get me wrong, Gold and Silver have been a good investment and will continue to be a safer alternative to cash, but the cold hard fact is; our country will never return to the Gold Standard and if the Federal Gov’t really feared a gold takeover, they could legally seize all gold from residents. So in short, your plans fail.

shermanr6 says:

@TheGreekMan1981 i did not realize i was writing the Constitution…excuse me for internet chat languauge…excuse me for three…probably shouldn’t have called u an idiot but i have come to the realization that 99 out of 100 Americans are and based on what u said u have to be American. of course the price of gold will come crashing down but that’s after our dollar does and the world has a new reserve currency. u can bet on that!

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