Yes it is true that China bought a great deal of gold in SEPT. They also used to export 3,500 tonnes of silver a year and now they IMPORT silver. The Chinese are smart to buy gold and silver when they get globbered while here in the states we have our DEFLATIONIST ANALYSTS who tell us to sell gold and silver on Spikes. I am not going to name names…but there are at least a good dozen of them out peddling the deflation card.
One more thing… many are saying silver is behaving more like copper and is more an industrial metal than a precious metal. I don’t know of any COPPER EAGLES, PHILHARMONICS, MAPLES or etc. It’s mostly gold and silver.
Lastly, silver is actually doing much better than copper over the past year and a half. In March of 2010 you could buy 5lbs of copper for one ounce of silver, whereas today you can buy 9.5 lbs of copper for one ounce of silver. I have written a blog piece at the SILVERGOLDSILVER website which you can find at the link below:
COMPARING GOLD-SILVER to COPPER
When gold was taken down in SEPT, silver’s fall was almost identical. Silver is heading much higher with gold. Deflation is for dummies.
China appears to be preparing for internationalization of the Renmini using gold as a throttle.