– Chinese Central Banker Declares That ‘Gold Is The Only Safe Haven Left’ (Business Insider, Dec. 27, 2011):
China is making an even bigger move toward gold in reaction to money printing around the world (via @JamesGRickards).People’s Bank of China official Zhang Jianhua declared yesterday: “No asset is safe now. The only choice to hedge risks is to hold hard currency – gold.“
Zhang, the bank’s research director, recommended buying the dips: “The Chinese government should not only be cautious of the imported risk caused by rising global inflation, but also further optimize its foreign-exchange portfolio and purchase gold assets when the gold price shows a favorable fluctuation.”
China’s $3.2 trillion in foreign reserves are currently invested one-third in U.S. treasuries 20 percent in euro-denominated assets and only 1.8 percent in gold, according to China Daily. China has one of the world’s biggest gold reserves at 1,054 tons.