The gold standard evolving: Prices going on up

BY STEVEN KASZAB

Gold has been the one stable root within an economic system. Sure, the value of gold moves as too your local stock exchange, with many factors affecting its value wave. Demand, availability, stock loads discovered and still hidden in the earth. Well, we are seeing a major manipulation of the gold stocks like never before, all micromanaged by China.

For the past decade many within the sector have tried to drive the price of gold upward. With an annual increase in production of 10-15%, it is difficult to make gold more costly, but China has found a way. By controlling other nations’ national gold stocks, not producing gold, in fact slowing production in the future, it could be said that China is creating a false depletion of gold, limiting its production and distribution. China buys 33% of all gold globally, and now manages a large portion of it too. No matter the excuse given, a limited stock will bring prices higher.

For the last few decades China has been acquiring all forms: of gold, silver and other precious minerals, most essential to its financial and economic growth. While America has been the “gold standard” of where to stock one’s national gold stockpile, making the American dollar a currency of choice to most nations, this is changing, as China challenges American supremacy in gold management.

Several African states have withdrawn their gold assets from America, placing their wealth in the hands of Chinese management and protection. Claiming this move has been done due to America’s economic instability, one can see that political and economic promises are being made by America’s challenger China. After all, he who controls the purse strings, controls the mindset of the owners of the gold, and how and where to invest it.

There are African states that are making the move as a way to communicate their displeasure with American Foreign Policy. While China is one of the world’s most profitable loan givers, charging more interest for a loan than others, it too will manage these nations gold reserves in a profitable manner, while giving America a financial black eye in the process.

The gold standard is evolving, as to the position of the globe’s superpowers.