A new world currency is in the making The Chinese Renminbi backed by gold
China has been importing gold officially and unofficially at an increasing rate in the past few years. Last year alone it imported 630 tonnes. The goal is to have at least 10,000 tonnes by 2015 up from the current 4,500 tonnes they currently have as a support for their increasingly popular currency the Renminbi.
Now most trading nations are accepting Chinese Renminbi as a hard currency and in many cases are using it in place of the US dollar which is seen as subject to increasingly high risks of inflation as the US money machines print more and more each day to push their budget crisis down the road.
As China is the largest gold producer on the planet it is adding to its own reserves in this way as well. It is produces around 300 plus tonnes per year.
Fort Knox in the US holds not only the US gold stocks but other countries like Germany as well but is becoming less favored as there is some doubt to the physical amount there and the quality of what is there due to lack of third party verification Germany has become one of the first countries to start moving their stocks away from Fort Knox and take them back to their own country where they are seen to be safer.
What does this all mean when at the same time gold prices have been dropping. Well if the past is anything to go by I believe the price is being manipulated by China to allow it to buy gold mines and physical gold more cheaply. How is that for a conspiracy story. History will be my judge.