IF the People’s Bank of China (PBoC) supports the Yuan with gold, approximately 1,000 tons, the move would send the price of gold soaring to $64,000 per ounce, 50 times the current price.

Bill Murphy & Chris Waltzek

from GoldSeekRadiodotcom:

Bill Murphy from GATA.org and the host discuss a report from Bloomberg Newsanalysts who claim, if the People’s Bank of China (PBoC) supports the Yuan with gold, approximately 1,000 tons, the move would send the price of gold soaring to $64,000 per ounce, 50 times the current price.

In addition, reports from Venezuela indicate 64% inflation, approaching 5% per month as the Bolivar currency collapses.

Venezuelan money growth is approaching exponential levels, eerily similar to the Fed’s balance sheet.

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  • Mick McNulty

    If China were to back its currency with gold that one announcement would put an end to America in one day, without a bullet being fired. And it would end Israel too. Go China!….Go China!….

    • Grim Fandango

      Be careful what you wish for…

  • Tom

    Before gold bugs get giddy over this, they should remember that $64,000 gold would have the same purchasing power as $1,200 gold does now, because the former number reflects a dollar value crash, not a gold value increase. But even a much smaller dollar crash would have crippling consequences for Americans’ standard of living. Fair enough, for a country that forgot the value of making good stuff and decided to live on the printing press instead.

    However, the 1,000 tons of Chinese gold is almost certainly vastly under-reported, and the real figure would definitely change the math. I just read elsewhere that Germany alone bought 32.2 tons of gold in Q1 2015, and I hardly think China’s holdings only total 30X a single quarter’s purchases by a small country compared to China. If the math GATA is using is total yuan in circulation divided by total gold reserves, changing the gold reserves upward changes yuan per ounce (and hence dollars per ounce).

    • rhonda.foster

      Current estimates of China’s gold reserves are between 8,000 and 13,000 TONS. Even so, if they ‘only’ have 8,000 tons, the price of gold should be $8,000/oz. If China were to have an incredible 16,000 TONS of gold, the price of gold would still be $4,000/oz which is a far cry from the $1,200/oz gold has been languishing at for the past year.

      • Tom

        The same principle would apply regardless of the gold “price”, which is that the purchasing power of the actual gold will be approximately the same before the rise in price. Because the total gold quantity in the world is very stable, only experiencing a gentle linear annual increase from mining, while the fiat currencies can and do rise exponentially, indeed must rise exponentially due to the interest that must be paid on previously created fiat paper.

        One point I left out yesterday on the above comment concerns the capital gains taxes that stackers will owe on their gold when and if they convert any of it back into fiat paper. Even though the purchasing power of the gold is the same, and the higher price is really the value of the dollar falling, the government will treat the situation as if you made a gain on the transaction, for which you owe taxes. The truth is you are being punished for choosing to escape the theft by inflation.