China is going to buy All Gold - Alasdair Macleod

The financial system in China is increasingly oriented towards gold, driven by substantial household savings seeking to escape their own currency.
This shift is part of a larger global trend where central banks representing the majority of the world's population are moving away from the U.S. dollar. Historically, the U.S. has leveraged its dollar dominance, but this has led to economic instability in other nations.
Therefore Countries like China and Russia, particularly through alliances like BRICS, are aiming to trade in their own currencies, which could diminish the Dollar's global role.
This shift may impact Western financial markets, where gold is often represented by paper contracts.
The speaker explained that China and its partners in the Shanghai Cooperation Organization and BRICS are moving away from using the U.S. dollar for trade, focusing instead on their own currencies and gold.
As Chinese investments increasingly focus on gold, this trend might precipitate a crisis in Western capital markets.
The physical gold is leaving Western vaults, heading to China and Russia, reducing gold availability in the West. This shift is due to central banks and populations worldwide dumping the U.S. dollar.
In the U.S., inflation unexpectedly dropped to 3% in June, sparking optimism for possible Federal Reserve interest rate cuts. However, concerns about the long-term sustainability of the U.S. debt and market conditions complicate this. Rising government deficits and money supply threaten the purchasing power of major currencies like the dollar, euro, and pound.
The central banks, particularly the Federal Reserve, aim to lower interest rates to manage government deficits but face market resistance due to concerns about the US debt problem. Banks, especially in Japan and Europe, are highly leveraged, which makes them reluctant to lend at lower rates due to potential losses from commercial real estate value declines. Additionally, the belief that inflation is over is misleading.
Governments running large deficits create more currency, diluting the purchasing power of existing currency. Alistair's prediction highlights the potential decline in the US dollar's dominance, as countries like China increase local currency trade and gold reserves. This could lead to rising inflation and economic instability in the US.
Credit: Liberty and Finance
• Foreigners Massively D...
#finance #money #gold

[@andrewlin6136]

Local people of Russia, China 🇨🇳 and India are buying gold, not from now but from ages

[@jasonlai1892]

I buy USA stocks. With the appreciation of my investment. I multiply 1.35 to convert to my local currency. I multiple again 3.48 to spend it in at my neighboring country next door and with my rental of my house, i enjoy my retirement there. I rather buy Nvidia than gold.

[@davidmmm8]

USA stocks are paper instruments.
Unlike Gold and Silver. Which are valuable Precious Metals.

[@jasonlai1892]

@@davidmmm8 Thanks for sharing from another angle.

[@JohnEyubehdabron]

Please keep your exaggerated comments to yourself.
If things are working for you with other assets, that is wonderful. No one came here to talk about other assets, but gold.
If you don't like gold, that is fine. But don't come here with all these gold bashing comments.

[@jasonlai1892]

@@JohnEyubehdabron You are a joker lol. Dont be jealous of me. Get a life.

[@jasonlai1892]

@@JohnEyubehdabron Wish you good health so you can work for next 70 years. Buy more gold.

[@andrewlin6136]

Chinese buys 24ct gold, unlike western people buy 16 to 18ct gold

[@andrewlin6136]

@@johnmarkrobinson2924 people of India has more gold than reserve Bank of US (21,000 gold people of India)

[@andrewlin6136]

@@johnmarkrobinson2924 why not ask Indian people of your country

[@esioanniannaho5939]

The difference between a Current A/C and Savings acc in inflationary times:
A current account with Fiat currency is melting ice. Only useful and accepted in that country or jurisdiction of influence for commercial trx.
A Savings account holds it's value. Certainly PMs or stable Commodity that can be liquidated or traded and exchanged for something else useful.
Post September and October 2024 only PMs (Precious Metals) will be accepted internationally not melting ice of Ccy.
So time to get some PMs. I got my savings in Sprotts Pslv ETF physical.

[@davidmmm8]

ETFs are always just paper investments.
I far prefer Metals investing. 🥴🤑