Secret Purchases Push China’s Gold Reserves to Twice Official Levels
While the United States of America is rapidly accumulating debt, the People’s Republic of China is rapidly accumulating gold. Based on information from industry sources and the personal calculations of financial analyst Jan Nieuwenhuijs at Gainesville Coins, the People’s Bank of China has bought 713 tons of gold so far this year. That is a staggering 80 percent higher than China’s gold purchases during the first three quarters of 2022.
Every fiscal quarter, Gainesville Coins estimates how much gold is bought secretly by central banks. China’s recent purchases bring its estimate of China’s real gold holdings up to 6,280 tons, more than twice its officially disclosed reserves of 2,637 tons.
Insurance policy: Celebrated stockbroker Alasdair Macleod has pointed out that tying the yuan to gold may be China’s only way to survive economically if the dollar collapses under the weight of America’s burgeoning debt load.
The dollar has been the world’s dominant reserve currency since 1944, when world leaders met in Bretton Woods, New Hampshire, to tie most of the world’s currencies to the dollar at a fixed exchange rate, while the dollar in turn was backed by gold held in vaults. But U.S. President Richard Nixon abolished the gold standard in 1971 so he could print money to continue fighting the Vietnam War—and the value of the dollar has been in a free fall ever since.
Nations continue to use the dollar as a reserve currency because the world’s other currencies are in even worse shape. But if China launched a gold-backed yuan, the dollar’s days as the world’s dominant reserve currency would be numbered.
Ancient prophecy: Only time will tell how this situation will play out, but dozens of Bible prophecies foretell the collapse of the U.S. (request a free copy of The United States and Britain in Prophecy).
A prophecy in Ezekiel suggests that gold may play a part in America’s downfall. Ezekiel 7:14-19 prophesy a time after Americans have been led into captivity and the world is experiencing a catastrophic time of plagues known as “the day of the wrath of the Lord.” Ezekiel warns that gold and silver won’t be able to buy food, so people will cast them into the streets.
Yet for people to cast their silver and gold into the streets, they have to own some in the first place. For the most part, neither silver nor gold has been used as currency since President Nixon took America off the gold standard. Does this passage indicate America’s enemies will soon start using gold-backed currencies again? Both China and the European Union have large enough gold hoards to do so, and China is rapidly buying more.
Learn more: Read “American Gold? No Thanks!”