Act now like China – rapidly build up your gold reserves!

According to analysts, the central bank in Beijing purchased 735 tons of gold last year. In January 2023 alone, it is estimated to have been 228 tons, with an approximate value of $14.66 billion US dollars. Considering that China simultaneously divested $22 billion worth of dollar bonds, this creates the impression that the Middle Kingdom has lost confidence in the dollar. Or is China pursuing its own (dangerous) objectives?

We have developed four theses for you, which we would like to present:

If Donald Trump wins the election, general confidence in the dollar could suffer. (We reported) But what if he loses? Could civil war-like conditions threaten, as his supporters accuse the opposing side of electoral fraud? Unstable domestic political conditions rarely benefit a country’s currency.

Some consider a new BRICS currency unlikely because India, Russia, Brazil, and South Africa differ too much in their objectives. Nevertheless, these countries are united by their wealth of production-critical raw materials and precious metals. The decision to shed the dollar’s dictate and trade goods like oil with their own raw-material-backed currency in the future is therefore at least conceivable. With solid gold reserves of its own, China would certainly have a good starting position if this currency were to materialize.

China observed that the US and its allies froze Russia’s dollar reserves when Russia invaded Ukraine in 2022. To circumvent such punitive actions, Russia focused on the physical possession of gold. China’s lesson from this could be: gold provides independence. Or is China imitating Russia with direct reference to its war of aggression? If so, that would mean it expects sanctions in the near future. But why would China expect sanctions? This brings us to Thesis 4.

A scenario in which the West could impose sanctions on China would be an attack on the island of Taiwan, which advocates for its independence. In this case, the US and its allies would be drawn into the conflict and would likely impose severe sanctions against China. But that’s not all: in an extreme case, all trade in the South China Sea would come to a standstill, which would further exacerbate the scarcity of raw materials for Western nations.

We believe that theses 3 and 4 are closely related and reflect a highly probable scenario. China is preparing for something, getting ready. Firstly, we should take this seriously, and secondly, we should anticipate it. Let’s do as China does!

As the world’s reserve currency, the dollar is also the basis for America’s ability to incur debt. If international confidence in this currency disappears, it is imperative to be invested in gold, because then major turbulence in the financial markets is almost certain to follow. Or, to put it another way: one must build the proverbial ark before it starts to rain, because then it will be too late!

Noble BC offers a powerful and affordable gold proposition. Speak with your advisor!