China is hoarding the world's gold
China is the world's largest producer of the precious metal, but of late its central bank has been buying up large quantities. So what is it doing with it?
That’s why I put all my savings into real shitty drawings of cartoon apes who look like they smoke weed. China can take your gold but they can never modify the blockchain record that proves I’m a fuckwit.
I'm still waiting for that Seth Green TV show...
That made me laugh.
I will not vote this above 69 because it’s perfect until someone does
The article title says china is hoarding the worlds gold, yet the us owns the most by a very large margin...
That makes more sense... they historically (culturally?) value jewelry over money due to the economic fluctuations that have occurred over time. Oftentimes they rely on precious metals for savings as it holds value better.
Add to the fact that there's over a billion ppl it stands to reason they may have accumulated more gold than most countries.
But idk where fort Knox stands in comparison, so maybe USA has more gold even so.
yeah but china bad
Yes. And…?
And another thing, it also says China PRODUCES the most gold. Okay so they produce the most and hold what, less than 30% what the US Fed holds? Ridiculous headline and article. Seems as if they've had every opportunity to amass more or equal to the other leaders and are only just now increasing holdings over the past 9 months.
Newsweek is hoarding the world's stupid.
Doesn't the US literally have the vast majority of the world's original gold reserves from the bretton woods agreement before Nixon abolished the gold standard?
possession /= property. During Bretton-woods everyone deposited their gold in the US.
The US own around 8.1k tonnes, EU member states 11.7k, Switzerland another 1000.
Germany has the 2nd largest reserves by country (after the US), 3300 tons, and has been bringing gold physically home, completely emptying Paris' vault, moving 500t from New York to Frankfurt, London stayed about stable.
You now might be asking yourself "how the fuck do they transport 500t gold across the Atlantic" and the answer is: Nobody knows. The Bundesbank isn't saying a thing short of that the gold went to Switzerland to be analysed and re-melted. It's not much volume-wise though, about 9m3. My best bet is submarine to Germany's north coast, then an inconspicuous train to Switzerland (it's not like German subs can't operate in shallow water but the Rhine, nope).
Could have also used a transport barge, they're apparently the most efficient means of shipping materials over long distances, granted this is primarily over river conditions.
From the article:
Its gold reserves are estimated to be 2,113 tonnes as of July—the fifth largest behind the Federal Reserve's 8,133
China is hoarding the world's gold
the fifth largest behind the Federal Reserve's
Guess who they learned from?
Ok that was always allowed!
Apparently not if you're Libya
So? We don't use it for money anymore.
But when money fails (hyperinflation, sanctions, digital collapse, bank failures, violent revolution, etc.), countries who already have gold reserves will be the only ones with anything of value.
Beyond that, just by virtue of the fear of any of those events or general international turmoil rising, the value of gold rises, too, as one of very few stores of wealth that can survive any such event. Investing in gold is a great low-risk move for guaranteed returns on huge reserves.
Edit: I don't know why people are downvoting this lol. Talk to literally anyone in finance.
Look where that got us...
China is also the land of dragons. Coincidence?
These were the exact words my trump loving batshit Christian mother in law spews every time she opens her mouth
But I need that gold!
Newsweek
I mean, fuck off
I'd like you to tell me a better way for Xi to swim around in a giant moneybin like Scrooge McDuck.
The world's gold you say? Seems to me that once someone owns it the gold is no longer the property of "the world."
Does gold still have the same value it used to? When it was first used people put value on “oooh, shiny rock, it must be precious”, but now is it really that valuable? It sounds like they’re hoarding it because they think it’s useful as a currency, but if things got bad would other countries care about it?
Gold is agreed upon as a store of value. There's always someone willing to buy it. You're right that its intrinsic value as a material is lower than the actual price but people's belief in gold is the same as their belief in a fiat currency.
The difference is that gold is a physical asset, so that no matter what the rate of inflation or the fluctuation of the market price if you have a tonne of gold you will always have that tonne.
Also it is not administered by a central bank with a political agenda.
Lastly gold is rare and finite. Eventually there will be no more gold to be mined.
The price of gold fluctuates though. And it could potentially devalue significantly if a new source is discovered or a new method of mining or extracting it (such as filtering it from seawater) is developed.
So yes, if you have a tonne of gold, you will always have that tonne, but it could lose, say, 20% of its value quickly.
Until we can successfully mine asteroids, and then all precious metals will have nigh infinite supplies. I suspect we’re not too many decades away from that.
It tends to go up in value during chaotic times as people use it to insulate their savings from the economy when they are expecting regular currencies or economies to crash.
About 10% of gold usage is in technology. This has been steady for many years. Jewelry and Investments can trade off. But yeah, basically its just mostly values because its a rare shiny rock.
If things got bad they'd have the advantage as gold is a much more trustworthy investment than unbacked currencies
Yup there's a reason why the US holding them in Fort Knox
Its value has kept increasing over time.
And it will likely keep doing so, as while in the past gold reserves only dropped when gold was lost (like ye old Spanish ship going down in the Ocean) against its natural increase of continued mining, these days, gold is also used in quite a lot of applications where it becomes impractical to recover after being discarded.
And this removal of gold reserves will only keep increasing with the increase of its uses in technology.
So, yeah, its value is almost assured to stay very solid and monopolizing the worlds gold also gives you a degree of control over technology markets.
Markets where the west has typically kept China behind the curve.
It gives them leverage, economical and technological.
There’s a grizzled old prospector reading this and getting VERY pissed rn
This is the best summary I could come up with:
Despite China being the largest producer of gold in the world, its central bank has been at the forefront of a surge in purchases of the precious metal on the international market as it seeks to reduce its reliance on the dollar.
While the full extent of China's holdings and purchases are opaque to international observers, experts say the increase in interest in gold is part of a broader move away from dollar-based assets that has been taking place for a while, at a time of financial and geopolitical volatility.
Rather than seeking to influence the U.S. economy, they say, China's gold rush could be an attempt to shore up its fiscal position with a stable and highly saleable asset as bond markets suffer and its relations with Western nations sour.
Since the spy balloon incident, questions have been raised of land purchases near U.S. Air Force bases, while it has been accused of stealing American agricultural technology and intellectual property.
In order to combat post-pandemic inflation, many central banks have raised interest rates, which have in turn affected government bond yields that drive down the return on such investments.
"Contrary to widespread perception, if China buys fewer U.S. assets, this will not hurt the U.S.," Michael Pettis, a professor of finance at Peking University's Guanghua School of Management, told Newsweek.
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