Where are they going to put their money that has a deep market? Gold? LOL
These folks are just playing games. China sold hundreds of billion od TB last year to propped up their stock market from complete melt down in addition to defending Yuan. If you had 3 trillion in the market and you need to monetise quickly and don't want the rest of your investment to suffer a haircut interim, tell me another deep market they can put their nest egg into?
The on going debate on QE and gold rally has been proven that when the market realise there is no inflationary pressures in US let alone hyper inflation, there isn't a need to hide in gold among other threats to gold. We are still in a low yield condition replicated in the 3 corners of the developed worlds so it is a no BRAINER that only decent returns is stocks. If a lot here imply gold is insurance then don't over insure.
If gold is money then it is dumb money looking to satisfy fear by paying for witholding cost instead of interest rate return. Simplified NIRP? Haha
