Pravda is out recently with a rumor that China has actually hoarded 30000 tons of gold, an amount that is 30x the commonly believed number and nearly 4x the believed gold holdings of the USA. While unconfirmed, it is exactly what I would be doing if I were China and I have stated this several times in years past in this blog. Unless it wants to be an economic slave to the US forever, China has to break free somehow. To drive the change via military action would be ridiculous. The US has too many killing toys that it bought with OPM. It outspends the world 10:1 on the production of death.
The Achilles heel of the US con game is the fake money supply that it uses to buy global submission to its will. Since gold is the only thing and I mean the one and only thing that can legitimately and believably call the dollar a fraud, gold is the only real weapon that can bring US global hegemony down. Gold is Kryptonite to Superman USA.
Outside of war with someone stronger (who currently does not exist), gold is the only thing that can topple the economic death grip that the US holds over the world. If China at some point confirms that its gold holdings are anywhere near as big as reported by Pravda, the US will have no choice but to immediately embrace gold again and the miners will skyrocket per Avi's wave 3 model. If we see China officially confirming that it will back the Yuan with gold (and I do not consider this a ridiculous notion as you can see from this post), run do not walk to buy the juniors. The US government has gone out of its way for decades to convince people that gold is a barbarous relic because that notion served its goals. But that propaganda will go into reverse in an eye blink if China and Russia decide to launch an economic and political attack on the US using gold as its main weapon.
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I'd really wait for a solid confirmation, since, though entertaining to read sometimes, the Pravda still is the newspaper of the Communist Party of the Russian Federation. Its name (truth in Russian) is pure Double Speak.
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