China has been hoarding gold lately. China claims that it has been holding on to just as many US Dollars. It's just holding on to more gold. Don't believe it!People don't generally increase one portion of their portfolio without decreasing another portion. There's a push and pull going on. If China is increasing it's holdings of gold, it will likely decrease it's holdings in other areas like US Dollars/Bonds.
China's exact holdings of US currency and bonds are unclear, but some economists are thinking they might hold 10 to 30% of all US savings bonds.
If China really does hold that much in US assets, it will dump US dollars to buy gold.
For the gamblers, USD is not very attractive. The counter-party might say a recovering US economy will be good for the US dollar That's true and something the forex traders will have to adjust for.
Continued from China Takes Over the World p.2. Consider going long in something like GXC of FXI.
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