Trade war morphing into a cold war
Just two weeks ago, The Age ran a piece from a UK writer, telling everyone that gold was a ‘delusional’ investment.
The article trotted out the usual reasons not to buy the metal.
It doesn’t pay interest…
It costs money to store…
And my favourite: Warren Buffett doesn’t like it.
A couple of weeks later — and a US$100 per ounce rally in the precious metal — The Age is singing a different tune.
This morning, they’ve run another piece on gold.
This time from an Australian writer.
And — unusually for the mainstream press — the author pointed out how China has been moving away from US Treasuries and into gold…
…essentially drawing mainstream attention to the ‘de-dollarisation’ of China.
This is something Jim and I have been writing about in Strategic Intelligence Australia for almost three years.
China moving into gold and away from US Treasuries isn’t new, and it’s not even close to the ‘latest shot’ being fired in the trade war.
In fact, as Jim points out today, the tensions between the US and China are increasing faster than we can keep up with.
Accruing large volumes of gold on the down-low were just one part.
Now, it’s switched. The political parties in China are attempting to get their citizens on board.
Communist newspapers in China are becoming propaganda pages for the public, reaffirming state views about how much damage the Communist Party can inflict on the US.
Get ready, because the trade war has moved from tariff lobbing to declarations of strength.
Just how much longer until the trade war becomes a cold war?
Until next time,