Are central banks accumulating more gold and turning away from the U.S. Dollar?
The Chinese central bank is sitting on 1.7 trillion U.S. paper dollars and is doing everything it can to as rapidly as possible to get out of those paper dollars. The amount of gold that's been flowing into China through Hong Kong is just staggering. We're talking about hundreds of tons. There's just not that much of it out there. They've been buying like crazy. So have the Russians. So have a number of central governments. Ten years ago, central governments were net sellers of gold. Now, their holding dollars and now they've reversed themselves. They’re surely not buying any new dollars, but they're increasing their holdings in gold. These are the people who are the most knowledgeable people in the world. If you're running a central bank, you know all the inner secrets. You know all the dirt. If they're buying gold, that's good enough for me. I'll follow that lead. I don't have to know all the details, but if I know someone who does and just follow their actions.
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