In my last post I noted that the Chinese government is playing the same game as other countries in the world, devaluing its currency for international macroeconomic reasons, which causes the wealth and buying power of its every day citizens to be diluted.
We talked about how Bitcoin is an alternative that many Chinese are resorting to to try and protect some of their buying power, but as soon as Bitcoin really starts to build wealth, the government or Central Bank of China make some policy choice that knocks the legs out from under Bitcoin, and it tumbles in value again. Well, looking at this you might think that if the Chinese government will be so anti Bitcoin to protect their currency, then they must also be anti-gold for the same reason. In fact, this is not true.
China is very pro-gold. Not just for the banks and the government, but also in terms of having the regular citizenry own gold and precious metals. This has been documented. The Chinese government in fact encourages its citizens to buy and hold gold. The link I posted proves this. So when the time comes that gold takes off and Chinese citizens rush into gold, don’t expect the government to knock down the price like bitcoin.
Get a personal account at Goldmoney. You will be glad you did.