Friday, September 23, 2011

China accused US and EU of supressing gold price

In a recently released US embassy wikileaks cable, China accused US and EU of suppressing gold prices.
The China Radio International sponsored newspaper World News Journal (Shijie Xinwenbao)(04/28):
 "According to China's National Foreign Exchanges Administration China 's gold reserves have recently increased. Currently, the majority of its gold reserves have been located in the U.S. and European countries. The U.S. and Europe have always suppressed the rising price of gold. They intend to weaken gold's function as an international reserve currency. They don't want to see other countries turning to gold reserves instead of the U.S. dollar or Euro.
Therefore, suppressing the price of gold is very beneficial for the U.S. in maintaining the U.S. dollar's role as the international reserve currency. China's increased gold reserves will thus act as a model and lead other countries towards reserving more gold. Large gold reserves are also beneficial in promoting the internationalization of the RMB."

This clearly goes to show that suppression of gold and silver prices is not just a fantasy of conspiracy theorists and that it`s in fact the true opinion of major players on world stage such as China. Russia also holds similar views.


All these developments that are gradually coming to light are extremely bullish signs for gold and silver.

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