Two Articles on Gold

Koos Jansen is widely recognized as a leading expert on the movement of gold into China. He provides a new article with some significant updates. Jim Rickards recently put this note on his twitter feed about Ken Dam. Ken Dam also has an interesting article on gold written back in 1984. Below are links to these two articles (one new and one from 1984) with a brief summary of each just below the links. A thank you to a blog reader for forwarding me the links to these two articles.

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Renminbi Internationalization And China’s Gold Strategy

(Koos Jansen - Dec. 4, 2015)

"Here we go!

A seminar about gold supporting the internationalization of the renminbi and China’s financial strength was held in Beijing on 18 September 2015. One of the keynote speakers was Song Xin, President of the China Gold Association(CGA), Chairman of the Board of China International Resources Corporation, President of China National Gold Group Corporation and Party Secretary, who believes China’s economic power must be serviced by appropriate gold reserves to support the renminbi. An article written by Song published on Sina Finance in 2014 stated (translation by BullionStar):

For China the strategic mission of gold lies in the support of renminbi internationalization. Gold … forms the base for a currency moving up in the international arena.

If the renminbi wants to achieve international status, it must have popular acceptance and a stable value. To this end… it is very important to have enough gold as the foundation and raising the ‘gold content’ of the renminbi. Therefore, to China, the meaning and mission of gold is to support the renminbi to become an internationally accepted currency and make China an economic powerhouse."

The Future of Gold  -  Kenneth W. Dam

"Changes in the international monetary system, whether by reform or evolution, are heavily influenced by political and economic developments. Those developments, by their nature, are difficult if not impossible to predict. Changes in the international monetary system are therefore also hard to foresee."   . . . .   

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Added note: After I wrote this article a reader sent me another good article on gold. You can read that here.