China May Now Have World’s 2nd Largest Gold Reserves

Today acclaimed money manager Stephen Leeb stunned King World News when he said the Chinese may already have the world’s second largest gold reserves, eclipsing Germany to grab the number two spot.  Leeb knows China is incredibly secretive about its insatiable accumulation of gold, and believes they are not fully disclosing their entire gold position to the world at this point.  Here is what Leeb had to say:  “I’m focused on precious metals and this fascinating battle between the East and the West, Eric, especially China and the United States.  There is an economic ‘Battle Royale’ going on right now, and I think the Chinese definitely have the upper hand.”

“They have a stronger economy and a clear plan as to what they want to accomplish.  They have a much longer-term perspective, and this spells very, very tough times for the United States.  I wish it weren’t true, and I wish this country would wake up.

But everywhere I look right now I see limited resources and roadblocks even with such things as technology….

“I see the Chinese plan in terms of what they want to do, I see their economy turning around, and most important their push into gold.

I know KWN published a piece last night which said the World Gold Council is saying that China does plan to back up their yuan with gold.  Of course that’s what they are going to do.  They clearly want the world’s reserve currency.  They yuan is constantly increasing in use in Asian (business) dealings.  There is no doubt that’s going to continue to grow.

What Basel did was say ‘We’re scared to death of gold.  We don’t want to let anybody know that gold could be a currency because once we let that out of the bag everybody is going to want to rush into gold, everybody in the West.’  That would be terrible for all of these Western (fiat) currencies.

The Chinese are laughing at this.  I’ve mentioned before that China plans to use gold as part of their (future) reserve currency.  I’ve heard this directly from a Chinese diplomat.  Every action China does supports this (reality).  Last year they imported at least 1,000 tons of gold.

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