ZeroHedge brought to our attention an interesting Wikileaks that many fund managers will surely take note of regarding gold. In short, China is looking to gold to help it internationalize its currency. Funds managers that have been on the fence on gold, will soon be hitting the 'buy' button. Here's the excerpt from Wikileaks:
"According to China's National Foreign Exchanges Administration China 's gold reserves have recently increased. Currently, the majority of its gold reserves have been located in the U.S. and European countries. The U.S. and Europe have always suppressed the rising price of gold. They intend to weaken gold's function as an international reserve currency. They don't want to see other countries turning to gold reserves instead of the U.S. dollar or Euro. Therefore, suppressing the price of gold is very beneficial for the U.S. in maintaining the U.S. dollar's role as the international reserve currency. China's increased gold reserves will thus act as a model and lead other countries towards reserving more gold. Large gold reserves are also beneficial in promoting the internationalization of the RMB."
Sure, it could be a "plant", but a little bird tells us it's real and gold prices will be the verdict.
