by Gordon G. Chang
Beijing is planning to avoid U.S. financial sanctions on Iran by paying for oil with gold. China’s imports of the metal are already large, and you can guess what additional purchases are going to do to prices. LINK...
China has in essence cemented the fact that "Gold is Money" by saying to the USA, we don't need your SWIFT system because we have gold to settle our accounts with Iran. We also have the State of Missouri introducing a sound money bill yesterday that will include gold and silver. We have recently explained WHY gold is money, and here are two perfect real life examples that prove it. Throughout history nations have always used gold as a medium of exchange when paper money loses it's significance or tensions between counties rise. Gold will always be the default currency of choice, now and forever because of the reasons we explained in our April 21 post. Gold is NOT a risky investment, it is the most conservative investment you can make because Gold is Money, and it never changes. The only thing that changes is the value of the paper currency you are measuring it against, and when Central Banks control the supply of that paper currency then it's destined to be printed into devaluation. BK