In another indication of Chinese demand for physical gold, China’s ICBC Standard Bank has reportedly agreed to buy a London vault from Barclays. The ICBC Standard Bank is the largest bank in the world by assets, and the vault being purchased is one of the largest in all of Europe.
While the exact whereabouts of the vault are unknown, it reportedly is within the M25 road and can allegedly hold up to 2000 metric tons of gold and other precious metals.
Mark Buncombe, head of commodities for ICBC, reportedly said that buying the vault: “Enables us to better execute on our strategy to become one of the largest Chinese banks in the precious metals market.”
The move comes at a time when European banks are looking to get out of the precious metals business and more vaults have come under foreign control.
China’s appetite for gold has remained strong and the nation may continue to add to its reserves. In fact, China may want to get its hands on as much gold as it can while looking to boost the popularity of its currency, the yuan.
The yuan could be the currency that eventually challenges the dollar as the global reserve currency of choice, and larger gold holdings by China’s central bank may bolster the currency’s position.
China also last month reportedly launched its own gold price benchmark. This move is likely designed to give China greater control over the price of gold, and could eventually challenge the London gold price as the global benchmark.
We have said it before and we will say it again:
We see China taking steps to further cement its place among the global economic elite. As part of this process, we see the nation continuing to amass significant quantities of gold.
In our view, he who controls the gold has the power…
What does this mean for you?
It means that as the global financial powerhouses of the world continue to acquire and hold gold, maybe you should consider why…
It also means that as China builds its precious metals reserves, the likelihood of the nation’s currency challenging the dollar as the reserve currency of choice could increase.
If the dollar were to lose this status, the flood of dollars finding their way back stateside could devastate the dollar’s value and dramatically decrease your purchasing power in the process.
There are, however, steps you can take now to potentially hedge your dollar exposure.
Like buying physical gold, silver and other precious metals.
These metals have been considered a reliable store of wealth and value for thousands of years. They have stood the test of time, while countless fiat currencies have failed. If you acknowledge the possibility of further declines in the dollar, now may be the time to consider an allocation in physical gold, silver and other precious metals.
Adding these metals to your portfolio has never been easier, in fact, you can even use your IRA account to buy and hold physical gold, silver and other precious metals.
Remember: He who has the gold has the power. Don’t wait for further declines in purchasing power and eroding fiat currency values. Some of the most powerful financial entities in the world are buying and holding gold – shouldn’t you? To learn more about physical gold and silver ownership or how to begin building a holding of physical precious metals using your IRA account, call us today at 1-800-341-8584.Tags: advantage gold, buy gold, buy silver, china control gold, china taking over, chinese yaun, gold, gold price benchmark, gold security, physical gold, silver