China is stocking up on gold

[Sithara007]

Do you think Russia and China are doing this because they are expecting an economic crisis on the horizon? This might sound paranoid but maybe it's possible that they will both try to cause the crisis in order to profit from their gold investment.

Perhaps they are doing this to insulate themselves from any crash in the value of the US Dollar. Gold is one of the few assets which are protected against currency devaluation. The other assets such as equities and bonds lose their value along with the currency.

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[sportis]

The price of gold has opposite direction with respect to the price of dollars. A strong dollar keeps down the price of gold. A weaker US dollar is likely to drive the price of gold higher. It is well known that Chinese banks had more than 4 trillion of USA dept. It is not strange imo that they are trying to change dollars and euros as well with gold.

[Multipulty]

chain is stocking up Gold, may be buying gold to diversify its foreign reserve holdings away from its heavy exposure to the U.S. dollar, which accounts for the vast majority of its foreign reserves. China holds U.S. treasury bonds worth $1.3 trillion, Bloomberg reported earlier this week, as new record.

[davis196]

I just saw this. This is old but its still relevant I think. When this kinds of topics are released more in the news, we all already have an inkling that another economic collapse will happen soon. What do you think will this do to BTC? Is it still relevant to BTC?

China To Replace Dollar System With Gold Standard

http://yournewswire.com/china-to-replace-dollar-system-with-gold-standard/?utm_source=grc&utm_medium=relatedcontent

If China replaces the dollar system with gold standart their export to USA will become more expensive.

I don`t know why they will want to do this.

This might have some influence over bitcoin and btc price.

[X-ray]

America wants to start boycot China, China secures its money by turning it into gold. Just a safety system. Even though America still owns a fucking huge amount of money to china.

Yeah trump's effect as usual. turning to gold is not wrong though and they will not counting only on dollar. america will indeed get a big impact by it. but, both countries will more likely to broke off the diplomatic relations if these thing keeping up and continued

[deisik]

Do you think Russia and China are doing this because they are expecting an economic crisis on the horizon? This might sound paranoid but maybe it's possible that they will both try to cause the crisis in order to profit from their gold investment.

Perhaps they are doing this to insulate themselves from any crash in the value of the US Dollar. Gold is one of the few assets which are protected against currency devaluation. The other assets such as equities and bonds lose their value along with the currency.

The reserves in a foreign currency usually tend to roughly match the national debt of the state in that currency. In this way, the crash in the value of the US Dollar would not only devalue these reserves but also devalue the debt itself. So it is effectively six of one and half a dozen of the other. On the other hand, if the national debt tends to diminish over time (as is the case with Russia), it doesn't make much sense to keep the reserves of the currency any longer...

And buying gold with them looks a better idea on the whole