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China Should Buy Gold to Hedge Dollar Fall: Researcher

Posted By admin On June 25, 2009 @ 3:09 am In Money Watch | Comments Disabled

Reuters [1]
Thursday, June 25, 2009

China should buy more gold because the U.S. dollar is poised for a fall and the metal is needed to support the greater international role envisaged for the yuan, a senior researcher with the ruling Communist Party said on Thursday.

Li Lianzhong, who heads the economic department of the Party’s policy research office, said China should use more of its $1.95 trillion in foreign exchange reserves to buy energy and natural resource assets.

Speaking at a foreign exchange and gold forum, Li also said that buying land in the United States was a better option for China than buying U.S. Treasury securities.

“Should we buy gold or U.S. Treasuries?” Li asked. “The U.S. is printing dollars on a massive scale, and in view of that trend, according to the laws of economics, there is no doubt that the dollar will fall. So gold should be a better choice.”

Full article here [1]

China Should Buy Gold to Hedge Dollar Fall: Researcher 290509banner [2]

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URLs in this post:

[1] Reuters: http://www.cnbc.com/id/31535631

[2] Image: http://www.efoodsdirect.com/ammo-food.html?aid=14&adid=5

[3] Gold futures fall as U.S. dollar rallies after China move: http://www.prisonplanet.com/gold-futures-fall-as-u-s-dollar-rallies-after-china-move.html

[4] A Declassified Jon Huntsman On China’s Terror Of A Gold-Pegged Dollar: http://www.prisonplanet.com/a-declassified-jon-huntsman-on-chinas-terror-of-a-gold-pegged-dollar.html

[5] Gold Advances to Record in London on Demand for a Dollar Hedge: http://www.prisonplanet.com/gold-advances-to-record-in-london-on-demand-for-a-dollar-hedge.html

[6] China Finally Diversifying Out of the Dollar?: http://www.prisonplanet.com/china-finally-diversifying-out-of-the-dollar.html

[7] China Gold Reserves May Back Yuan Internationalization-Report: http://www.prisonplanet.com/china-gold-reserves-may-back-yuan-internationalization-report.html

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