We have recently highlighted the emerging tend of young people investing in gold and silver coins, and just today came across this article http://www.policymic.com/articles/16690/ron-paul-sound-currency-message-is-resonating-with-worldwide-leaders-including-china highlighting China’s strategy of accumulating gold bullion, with the CEO of state-owned China National going so far as to state that “gold is currency.”
Before going further, we want to be clear that this is not a political website, and that our mentioning of certain political figures or the actions of certain countries doesn’t necessarily reflect our personal political view. Rather, our intent is to highlight situations where individuals or countries may be pursuing a precious metals strategy that we believe may be of interest to our customer base.
While it’s impossible to know for certainty why China and other countries, such as India, are pursuing a certain strategy, it’s hard to ignore that most fiat currencies throughout the globe are being debased due to inflationary policies of their respective central banks. A prudent hedge against such actions appears to be investing in precious metals, such as gold and silver bullion.
Furthermore, it’s clear that countries are using other forms of currency other than U.S. dollars to conduct commerce with oil producing nations, which means that the dollar may not always be considered to be the world’s currency. If the dollar at some point in time becomes less of a factor in conducting trade, investing in other currencies, or hard assets, such as gold and silver bullion, may be a wise decision.
In summary, it’s clear that we’re seeing a continuing trend in not only individuals investing in gold bullion, but countries, such as China, doing so as well. This doesn’t necessarily mean that these countries are attempting to establish a worldwide currency, or doing so for some other type of political purpose, but it is an interesting trend that shouldn’t be ignored.