As the title says, The United States and others are calling for the Yuan to appreciate yet the Chinese government is still heavily encouraging gold investments and is currently expanding its range investments in the region. These two signs do not work well hand in hand. Why push gold on the citizens, invest heavily in the metal from a government standpoint if the Yuan is expecting to do well.
Many analysts and strategist will give different reasons on why they are are doing this so who really knows for sure aside from them. My opinion is that China sees the writing on the wall. Global economies are failing and China is trying to be on the ground floor by shoring up their nation with precious precious metals. This plan should help the country weather the current economic crisis as well as the coming super crisis that many are predicting.
Why are we not doing the same?
-Blogging4Bullion
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