In recent weeks, financial circles have been buzzing about the rumor China is holding 20,000 tonnes of gold, 10 times the number reported by Moneyweek and others less than a year ago. Historically, China has an effinity for precious metals. During the Peruvian silver boom in the 16th century, China was the Spanish empire’s greatest customer, eagerly willing to trade goods for silver. The Chinese hoarded so much silver back then, the world silver market crashed, and mercantilism and colonialism moved onto gold, slaves, and other commodities.
Can history repeat itself? China keeps all the gold they mine and import, never exporting an ounce just like silver 500 years ago. Will China’s accumulation shock and crash the market? Is this why it remains a secret? Or is something more self serving and long term in the works? For decades, China was propped up to the global economic leader despite its authoritarian government and poor human rights reputation. The world has grown tired of the Petro dollar, hence the BRICS movement. BRICS has not been able to topple the dollar, but if China embraces, launches, and proliferates a global crypto or digital currency in conjunction with an announcement they own more gold then the rest of the world combined, watch out!