4 ms·

In what sense is gold the real money? Gold doesn't back most currencies any longer. Money is the real money.

• digitalengineer 7y ago
  Then why would it make sense for a country like say China to build up massive (largest ever) hoarse of good? https://tradingeconomics.com/china/gold-reserves https://tradingeconomics.com/china/gold-reserves
  • et2o 7y ago
    If gold is 50mm a ton (wouldn't be of they had to liquidate that), rounding up, then they have at most 100 billion in Gold. Which sounds like a lot until you realize they have many trillions in USD reserves and debt.
  • ak39 7y ago
    China since 2016 has signed bilateral agreements with several oil-producing nations to receive payments in yuan backed by gold. This bypasses the need for the "petrodollar". This is the most likely reason for China's recent insatiable demand for gold.
    • vishnugupta 7y ago
      My "naive" theory for China to do this is that it's working towards making Yuan an alternate currency for countries to peg their currencies to.
  • navigatesol 7y ago
    >Then why would it make sense for a country like say China to build up massive (largest ever) hoarse of good? Why would it make sense for the people/countries that China is buying gold from to sell it, if it's "real money"?