PDAC: Is China Buying Gold to Eliminate US Dollar as World Reserve Currency?

“If you think it’s all about money, if you think it’s all about gold — you’re right. But in the world that we live in today, it’s all about China,” Canadian financier Ned Goodman told a room full of investors during Monday’s keynote speech at the 2014 PDAC conference.

China, as Goodman highlights, has been aggressively buying physical gold in recent years. And while some market watchers speculate that the Asian country’s end goal is to make the yuan a reserve currency, Goodman sees it differently. China’s end goal, according to Goodman, is to “eliminate the United States dollar as the reserve currency.”

To support his claim, Goodman points to China’s ties with Russia, and more specifically, Russian President Vladmir Putin.

“Mr. Putin is not a best friend of the United States,” Goodman said. “He would be in favor of eliminating [the US dollar] as that reserve currency.”

Over the course of the last year, demand for gold bars and jewelry has climbed a record 32 percent, with China surpassing India as the top consumer of gold. Goodman speculates that should China be successful in eliminating the US dollar as a world reserve currency, the impact would be tremendous.

“It just means that the United States is possibly in bankruptcy,” said the chairman of Dundee.

Even so, on the whole, Goodman sees China’s increasing activity in the gold market as a possible boon for the resource sector. While he admits to being generally bearish on the stock market, Goodman is a well-known gold bug and it is no surprise that he remains bullish on the metal.

“I’m very bullish on gold and anything that has an inflationary impact,” he said.

“What we need to get around the problems that we have with raising money is a buoyant stock market. Which I think we are going to get in the resource sector,” Goodman explained. “And we need the ability to get to market easier, which has been made very difficult by regulatory bodies and the Venture exchange.”

“The fact is, if we can return to a classical gold standard and get rid of the Federal Reserve being where we are, we will have a good time in the commodity markets.”

 

Click here to listen to the full audio.

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Comments
  • Better tell this to the USA derivatives market as they just keep going and have cornered the paper gold market and have been manipulating the POG for the past year

    Reply
  • Better tell this to the USA derivatives market as they just keep going and have cornered the paper gold market and have been manipulating the POG for the past year

    Reply
  • According to the Wharton School of Business, the Chinese Yuan only meets a couple of the criteria necessary to become a Reserve Currency. An Internet rumor is that around July 20 of this year there will be an IMF Currency Reset between 204 countries that have agreed to the globalization policy. All currencies of these 204 countries will be valued within %5 of each other depending on the assets they have. This would eliminate the need for currencies other than the U.S. Dollar to have to meet so many criteria in order to become a Reserve Currency and thus levels the playing field. This is designed to put an end to currency wars, market manipulation and save the Euro Zone. This is only fair since the rest of the world has been financing America’s Debt. China buying up gold before then will elevate the value of their currency because they haven’t realized gold is a fiat too.

    Reply
  • According to the Wharton School of Business, the Chinese Yuan only meets a couple of the criteria necessary to become a Reserve Currency. An Internet rumor is that around July 20 of this year there will be an IMF Currency Reset between 204 countries that have agreed to the globalization policy. All currencies of these 204 countries will be valued within %5 of each other depending on the assets they have. This would eliminate the need for currencies other than the U.S. Dollar to have to meet so many criteria in order to become a Reserve Currency and thus levels the playing field. This is designed to put an end to currency wars, market manipulation and save the Euro Zone. This is only fair since the rest of the world has been financing America’s Debt. China buying up gold before then will elevate the value of their currency because they haven’t realized gold is a fiat too.

    Reply

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