China is buying Gold in order to supplant the US Dollar as the Reserve Currency for the World. And America is supporting that role by messing with the price of Gold and Silver as done this week. This allows China to buy Gold at better prices so that one day, the RMB Chinese money will be backed by Gold and it will be clear that the RMB is the desired "dollar" for the world. If this happens, overnight the US economy will suffer loss. Our dollar will drop in value and everything we have will lower in price. China is now buying Gold mining companies.
Besides, the average citizen in China is buying precious metals since the country wants to enrich their citizens. Our governement is stupid to drive Gold pirces down to make the China takeover a reality.
Our plan should be to buy Gold and spend our dollars. Its no longer an issue of saving our government but to save ourselves since our leftist government is blind to what China is doing.
However, the reality is our Federal Reserve controls the markets by unlimited printing. They will force gold into the ground to make all of those that have bought gold question themselves. US traders know that when fear kicks in, there will be a massive sell off which will force scared money into US Treasuries. The markets are rigged. GOld will be sub $1,200 by elections. Short Gold now and roll it over to short treasuries after gold tanks and treasuries rise. Don't fight the rigging of markets. Go with the flow....
Sorry... Nobody in their right mind will go seek refuge in Treasuries.. Even if what you believe has even the slightest merit. Negative return after inflation amongst thousands of other reasons leaves Treasuries an absolutely no win proposition. Plenty of solid equities to park money, even the crowded dividends. Respectfully, I believe your thesis is outlandish at best.