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If the Chinese want all the gold.....

cohodkcohodk Posts: 19,155 ✭✭✭✭✭
in Precious Metals
...then why does their mint make pretty little coins to sell to Americans?
Excuses are tools of the ignorant

Knowledge is the enemy of fear

Comments

  • jmski52jmski52 Posts: 22,869 ✭✭✭✭✭
    The same reason that the US Mint makes pretty little coins to sell to Americans - high premiums.
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • derrybderryb Posts: 36,837 ✭✭✭✭✭
    Maybe they only want gold because they realize they don't want US Treasuries.

    Natural forces of supply and demand are the best regulators on earth.

  • jmski52jmski52 Posts: 22,869 ✭✭✭✭✭
    That's why they're into alot of things.
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • DoubleEagle59DoubleEagle59 Posts: 8,318 ✭✭✭✭✭
    The Chinese people are very smart.

    They're lined up now buying at $1300 an ounce because they know in 3 years it'll be at $500.
    "Gold is money, and nothing else" (JP Morgan, 1912)

    "“Those who sacrifice liberty for security/safety deserve neither.“(Benjamin Franklin)

    "I only golf on days that end in 'Y'" (DE59)
  • jmski52jmski52 Posts: 22,869 ✭✭✭✭✭
    You might add a zero to that $500.
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • cohodkcohodk Posts: 19,155 ✭✭✭✭✭
    Any logical responses?
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • nibannynibanny Posts: 2,761 ✭


    << <i>Any logical responses? >>



    Tradition? image
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  • edmundfitzgeraldedmundfitzgerald Posts: 4,306 ✭✭


    << <i>Any logical responses? >>



    You will not find any logical responses to an illogical question. The Chinese have never gone on record saying they want all the gold.
    Therefore your question is illogical, and not founded on truth.
  • daOnlyBGdaOnlyBG Posts: 1,060 ✭✭


    << <i>

    << <i>Any logical responses? >>



    You will not find any logical responses to an illogical question. The Chinese have never gone on record saying they want all the gold.
    Therefore your question is illogical, and not founded on truth. >>



    With all due respect, that's incorrect. The logical response to a question with a false premise is a false answer. Thus, such a logical response exists.
    For example, suppose that cows can jump over the moon- an obvious falsehood. You can make a perfectly logical statement by saying, "If cows can jump over the moon, then a US Congressman can speak the truth." That is a perfectly logical statement. image
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  • PokermandudePokermandude Posts: 2,713 ✭✭✭
    They buy gold to mint it into prettier looking coins to sell at a premium. Rinse, repeat.
    http://stores.ebay.ca/Mattscoin - Canadian coins, World Coins, Silver, Gold, Coin lots, Modern Mint Products & Collections
  • cohodkcohodk Posts: 19,155 ✭✭✭✭✭


    << <i>

    << <i>Any logical responses? >>



    You will not find any logical responses to an illogical question. The Chinese have never gone on record saying they want all the gold.
    Therefore your question is illogical, and not founded on truth. >>



    Then why I have I read on this very forum that the Chinese have an insatiable appetite for gold and are buying all they can get even going so far as to buy gold mining operations? If they are buying so much, then why are they selling it to Americans?



    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • jmski52jmski52 Posts: 22,869 ✭✭✭✭✭
    I only know what I've read, and I've read that the Chinese have a much smaller proportion of their assets in precious metals than do most countries. That, plus the fact that the Chinese do have a history with gold does seem to point toward a reversion to the mean in terms of gold ownership. A large population also makes small shifts in percentages more significant.

    I've also read that China is focused on buying up mining interests in Africa. That seems a bit more logical than continuing to stockpile dollars.
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • renman95renman95 Posts: 7,037 ✭✭✭✭✭


    << <i>I only know what I've read, and I've read that the Chinese have a much smaller proportion of their assets in precious metals than do most countries. That, plus the fact that the Chinese do have a history with gold does seem to point toward a reversion to the mean in terms of gold ownership. A large population also makes small shifts in percentages more significant.

    I've also read that China is focused on buying up mining interests in Africa. That seems a bit more logical than continuing to stockpile dollars. >>



    And eventually own all American interests by default(?)
  • GrumpyEdGrumpyEd Posts: 4,749 ✭✭✭


    << <i>They buy gold to mint it into prettier looking coins to sell at a premium. Rinse, repeat. >>



    image

    They do it so they can buy more than they started with.
    Sell a ton of pretty coins, buy back a ton + whatever the premium covered.

    Ed
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