china's 3rd plenum

Just to start a new topic ....

Who thinks China might start 'internationalizing' its currency as part of its new ten year plan being decided upon in the 3rd Plenum now underway?

I do.

The recent call by the Chinese press to 'de-Americanize' the World financial system was a 'shot across the bows' and clearly a warning to the US.

The stockpiling of gold by China might already have reached the level where it is sufficient to give the Yuan enough physical backing. It is kind of self fulfilling ... ease out the $US and replace it with some other reserve and gold takes off, possibly several multiples of its present value [in $US terms]

I have wondered about the debate whether silver or gold will appreciate faster. For my money if gold is going to be used to underpin a new reserve currency, then it will be hoarded and not freely traded as it is today. I think gold would far outstrip silver, as far as appreciating in value, in that scenario.

I never thought or predicted I would become a gold bug .... but it is hard to see the US dollar not going down the tubes. Something has got to give and the $US looks the weakest link to me.