China is secretly buying gold and could be about to dump its reserves of dollars and US Treasuries on the market, causing a crash in both! FREE report, see the top five stocks I’m buying right now! https://mystockmarketbasics.com/motleyfool
In this week’s stock market update, I’ll reveal that secret gold buying by China and what it could mean for your investments. We’ll look at the truth that could point to China having more than twice the amount of gold in reserves as anyone else in the world and why they want to hide the fact. I’ll then show you how to invest and what stocks to watch.
Stick around and we’ll cover the stock market this week with all the stocks I’m watching, the stock market news and trends you need to see.
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The World Gold Council reported third quarter central bank buying last week with a shock that could mean China weaponizes gold as early as 2023. Here you see in the report, buying of gold for national bank reserves jumped 300% from the same period last year. In fact, central banks bought more gold than anytime in the last 55 years when the U.S. was still on the gold standard. More than 400 tons of gold was bought and hoarded by government central banks.
The question then is why is China building a massive and secret hoard of gold and should we be worried?
The most obvious answer is as a response to the U.S. and a play on China dominance. When the U.S. weaponized the dollar earlier this year by cutting off Russia from its foreign reserve holdings held internationally, it sent a shock through the global economic system. It had never been done before and I guarantee you, China is looking for alternatives considering it holds about three trillion US dollars in reserve.
So first, China is likely trying to secretly shift its reserves from dollars to gold but there’s also another motive here. Hoarding gold may be a move to partially back its own currency or a digital currency, giving it more credibility as a reserve currency.
0:00 China to Weaponize Gold 2023
1:16 China Central Bank Secret Gold Buying and What it Means
11:36 Stock Market News this Week
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Joseph Hogue, CFA spent nearly a decade as an investment analyst for institutional firms and banks. He now helps people understand their financial lives through debt payoff strategies, investing and ways to save more money. He has appeared on Bloomberg and on sites like CNBC and Morningstar. He holds the Chartered Financial Analyst (CFA) designation and is a veteran of the Marine Corps.
