In 2009, China ordered its miners to no longer export any gold bullion. China is the largest producer of gold bullion in the world; 350 tonnes per year. This 350 tonnes yearly is now making its way to the vault of the People’s Bank of China.
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New York, NY (PRWEB) March 19, 2012
China is well behind when it comes to backing the yuan with the amount of gold that Europe and the U.S. can back their respective currencies with, according to Michael Lombardi, lead contributor to Profit Confidential. Lombardi reports that, when China implemented its most sweeping measures to make the yuan more open to the world in 2009, it simultaneously announced its most sweeping measures when it came to gold bullion. Lombardi’s recent Profit Confidential article, China’s Gold Rush, looks into the connection between the Chinese currency and the country’s demand for gold.
“In 2009, China ordered its miners to no longer export any gold bullion. China is the largest producer of gold bullion in the world; 350 tonnes per year,” says Lombardi. “This 350 tonnes yearly is now making its way to the vault of the People’s Bank of China.”
Lombardi highlights the fact that, over the last few years, the Chinese government has implemented new measures to make its currency—the yuan—an open currency to be used by investors globally.
“The People’s Bank of China has given every indication that China wants the yuan to be considered on level with the U.S. dollar and the euro,” says Lombardi.
Of the roughly 2,800 tonnes of gold bullion supplied to the world in 2011, Lombardi believes that China is on the hunt for most of it, to back the yuan.
“In 2009, China purchased four tonnes of gold bullion from Hong Kong. In 2011, China purchased 46 tonnes of gold bullion from Hong Kong, an 11-fold increase,” says Lombardi.
Lombardi strongly believes that China wants enough gold reserves to back the yuan, in order for the yuan to be taken seriously on the world stage.
Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it “begged” its readers to get out of the housing market... before it plunged.
Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.
To see the full article and to learn more about Profit Confidential, visit http://www.profitconfidential.com.
Profit Confidential is Lombardi Publishing Corporation’s free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit http://www.profitconfidential.com.
Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi’s current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six.