Who Let China's Silver Bulls Out?
Submitted by Compelled on Mon, 08/10/2009 - 12:00
in
July 30, 2009
Official Chinese TV announced last week that silver bullion is now available for the investing public. China, once on a silver standard where nobody knows today what happened to the hoard, now offers 500 gram, 1-, 2- and 5 kilo bars. The newslady alluded that silver is comparatively cheap to gold, citing the current gold-silver ratio of 1:70.
I could not think of a fundamentally bigger bullish sign for silver than China's move.
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I may be wrong
But I believe that a metal backed currency is against the WTO or the World Bank.
Interesting
I think there is an international battle behind the scenes for who will issue the next world currency when the dollar collapses. If someone comes up with a metal-backed currency, they will win, just like the US won at Bretton Woods with a gold-backed dollar. Every major player is jockying for position while the US is madly trying to create a coalition to keep a share. China is in the running for the new currency. Maybe they are laying the foundation domestically for unleashing a silver-backed internationl currency? Making sure enough silver is in circulation domestically so when they replace the Yuan with a silver-backed currency, the Chinese economy can transition smoothly.
Any thoughts?...
Any thoughts?...