"...People's Bank of China adviser Xia Bin told the Economic Information Daily today that China should steadily increase its holdings of gold, silver and other precious metals. In an interview with the paper Xia said that “holdings of gold and silver can help establish the yuan as an international currency by increasing China's "final payment capacity." He advised buying precious metals on the dips and while gold and silver are marginally lower today, the remarks are another long term positive for the gold market..."
"...The reference to silver was important as it marks the first time in modern times that a central bank advisor or official has spoken about diversifying currency reserves into silver. It shows how the Chinese view silver as money rather than as simply a commodity to be consumed. Indeed, the Chinese like most of the world, used silver as currency for most of their history.
The comments may signal the start of a growing shift from seeing silver purely as an industrial commodity to seeing silver more like gold – as both an industrial commodity but more importantly as a store of value and as money. As Milton Friedman pointed out, the major monetary metal throughout history was silver, rather than gold..."
I wanted to buy some gold to make a gift for a couple relatives. It would be cheaper to buy equipment and drive and open a gold mine rather than pay the market up. I believe it will get worse as the world changes in the middle east. I believe so far we are only watching changes that our government wanted. The problem with starting changes is they end up marching to the piper that they want to. The world will be much different this summer than today. Time will tell if better of worse and that situation is one thing that makes people want precious metals. I hear one expert say he thought that Israel would invade the sinai. What a bunch of hooey and be careful of those experts. The USA has had troops station between Egypt and Israel as part of the Camp david agreement. The only way Israel can get to Egypt is over a USA army unit and that is not going to happen.