Gold - China's End Game?
I have been pondering China's stance on Gold for awhile. India and Chinese cultures have historically valued gold more than western cultures. But that does not fully explain why the Chinese Central Bank and the Chinese Government's position on Gold, i.e. the fact that they are actively encouraging their citizens to buy it. I linked to a fastastic article back in November that discussed the issue Jeff Clark, Casey Research: How and Why China Will Flood the Gold Market - http://caps.fool.com/Blogs/ViewPost.aspx?bpid=300352. But this article focused on the Central Bank growing its reserves and encoraging the the public to accumulate. But it did not say WHY. Think about it: Why would a central bank, who is purchasing gold, tell the population to do the same? It would increase the purchase price for the central bank (which are net accumulators with a seemingly long term hold horizon, not net sellers).
But I just watched this video. IT IS EXCELLENT!!! Very interesting take. I am not saying it is right, just as the narrator is not saying it is right. But it is certainly plausible and is the best explananation I have yet heard.
Listen to the whole video, it is well worth your time