GOLD 0.51% $1,391.7 gold futures

china can drop the usd and make gold soar

  1. 2,739 Posts.
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    this may be pure speculation .. but stranger things have happened.

    I think i read that US is indebted to China due to a negative balance of trade to the tune of something like $10 trillion(maybe more?).
    China holds US treasuries and bonds to that value and can dump them or threaten to dump them at any stage.

    Taiwan may be the reason to play this threat card .. China wants Taiwan.

    Post Olympics may be the perfect timing for it with the national spirit soaring ?

    If this threat were to happen - the USD may drop 10% overnight and gold may double overnight.

    Speculation - but it shows the value of gold and why it may be important to hold in crises.

    We live in a strange world .. we dont know when the next crises will happen - maybe a good reason to be vigilant and hold at least 10% of all assets in gold - or gold stocks.







 
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