Silk Road: Godzilla walks among us again

By Pete Thomas
27-May (Futures) — Since the beginning of time gold has been the most sought after metal for trade and bartering. Its forms have been in the form of hand stamped artifacts, a Doubloon coin or a top shelf registered Pamp hallmarked bullion bar. No matter what the shape, gold has always held value and it has never gone to zero in its value as most paper currencies have at one time or another in their history.

This is why I just nodded my head approvingly when China released the information on its intent to form a new fund to become part of its “Silk Road” initiative. This is just a natural extension of the current system in which China is seeking security for its underlying currency the Rinimbi. It has become abundantly clear to me that the Chinese understand that they must become a tradable currency to expand both its security and to broaden its global influence. They also understand that the gold market is believed to reach 2.4 trillion dollars in depth this year. So to step into a global market were they can blend in without making huge ripples. They truly understand this would be in their best interest to become an international traded currency in smaller increments at home first.

…As the choice of names “Silk Road” very clearly portrays that China will once again see the trade routes fully opened over the next few years and gold will spearhead the final phase of the Chinese people becoming a global trading power with an underlying currency that can be exchanged anywhere in the world. Zaner Precious Metals is one of the only places where you can do currency swaps for gold it now appears we are about to have some new guests at the table.

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