China Curbs Gold Imports To Slow Capital Flight

derryb

China moves to limit fiat currency insurance

"The hit to gold imports comes as China tightens restrictions on overseas deals by state-owned companies in an effort to limit capital outflows that has seen the renminbi fall to its lowest against the dollar in eight years."

Result: Gold spikes in China. Who's next?

Further evidence to the non-believer that gold competes with fiat currency and that governments/central banks will do whatever is necessary to attempt to prevent it from doing so.

cohodk

Gold is an efficient medium to hide and transport wealth and income, especially from illicit activities. It does not compete with fiat currency. Global central banks are not afraid of gold.

derryb

I agree, gold is independence from a broken financial system. Witness this freedom where currencies are failing. Understanding why currencies do in fact fail is the first step in fixing a broken financial system. Eliminating/combating better choices does not fix what is broken.

ricko

Too many individuals, who hold some gold, consider it a medium to exchange for fiat currency..... rather than the fact that gold itself is money. I have tried to explain this, however, some live inside mental walls. Cheers, RickO

cohodk

Ricko, gold is no more money than is a unit of labor. Both are exchanged for goofs or services. Real estate, equities, and bonds are also exchanged for fiat currency. Those are asset classes, and so is gold.

TwoSides2aCoin

Rice is a commodity and cat tastes like chicken.
All this other stuff is Greek, to me.

TwoSides2aCoin

Their pandas have a higher premium than our Eagles. Just taking note.

ricko

@cohodk... no argument with your post.. but you seemed to miss my point....Of course, labor is exchanged for money etc., and commodities can be traded, my point was that - and perhaps I could have been more clear - is that many individuals ONLY consider gold as an exchange for fiat currency....whereas, as you pointed out, it can be exchanged - as money - for anything else. Cheers, RickO

2manycoins2fewfunds

Gold has functioned as a store of wealth for 6,000 years.

Perhaps this is the year it changes but unlikely.

A quick story........

I have my grandfather's ledger from N.C. mountains in 1916.
At that time a mans day labor was worth around $0.16/hr.

Gold was $25/oz in 1916 so it would have taken around 150 hours work to buy 1 oz. of gold.

Fast forward 100 years and at minimum wage of $8/hr same general ratio applies.

cohodk

@ricko said:
@cohodk... no argument with your post.. but you seemed to miss my point....Of course, labor is exchanged for money etc., and commodities can be traded, my point was that - and perhaps I could have been more clear - is that many individuals ONLY consider gold as an exchange for fiat currency....whereas, as you pointed out, it can be exchanged - as money - for anything else. Cheers, RickO

Yes, ricko, those that view gold as only an exchange for fiat are grossly misguided.

cohodk

@2manycoins2fewfunds said:
Gold has functioned as a store of wealth for 6,000 years.

Perhaps this is the year it changes but unlikely.

A quick story........

I have my grandfather's ledger from N.C. mountains in 1916.
At that time a mans day labor was worth around $0.16/hr.

Gold was $25/oz in 1916 so it would have taken around 150 hours work to buy 1 oz. of gold.

Fast forward 100 years and at minimum wage of $8/hr same general ratio applies.

Yup, gold keeps up, with fits and starts, to the rate of inflation. That's about all it does.