They assume that governments know what they are doing, so there is a bigger game afoot of which we are unaware.
The truth is that China and Western capital markets
view gold very differently. You will hardly find anyone in the London
Bullion Market who regards gold as money; and for them if gold is no
longer money Chinese demand for it is not a monetary issue. Instead it
threatens the bullion banks’ business that a useful financial asset,
capable of earning many times its physical value in fees, commissions,
turns and interest, is being leeched out of the market by Chinese
It is clear that nearly all Western central bankers share this view, believing that gold will never play a monetary role again.
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