1.5 Billion Chinese are encouraged by the Peoples Bank Of China (PBOC) to buy gold as a hedge against failing global currencies. Li Yining, a senior economist at Peking University and member of the Chinese People’s Political Consultative Committee advised: China should use the precious metal to hedge against risks of foreign currency devaluations.
This is a call to every citizen to cover their financial house with gold. In the last 2 months, the PBOC has added an additional 10% to China’s Gold Reserves. Li stated in Xinhua the official news agency, China should increase its gold reserves appropriately, and China must take every chance to buy, especially when gold prices fall. When Li speaks he has the ear of some very influential politicians such as Chinese Vice Premier Li Keqiang, who is seen as Premier Wen Jiabao’s successor in 2013.
As the Chinese people go, one can only imagine the pressure that will place on the demand for gold thus, driving the prices forward. With China looming as the next #1 economy in the world it is only a matter of time before gold permanently shifts upward. Gold is predicted by many experts to top $1,800 to $2,000 by the end of 2011 this makes gold a bargain at today’s current of $1,420.