China encourages Silver Bullion for investment

China has introduced its first-ever investment opportunity for silver bullion. The bars are available in 500 grams, 1 kilogram, 2 kilograms and 5 kilograms with a purity of 99.9 percent.

Your editor Pip here. It has always been my belief that China would attempt to establish a new world reserve currency to replace the dollar. Thereby assuring its dominance as the dominant super power in this new century. Controlling the world reserve currency is arguably the most powerful hand in the global game of economic poker. I believe this effort by the Chinese government to get its citizens involved in precious metals investing is a step towards that goal. By amassing precious metals within its borders it can fulfill two important objectives.

1.) It will be able to insulate the country and it’s population, to some degree, from the dollar collapse. Which will in turn make the country richer (and thus more powerful) as its monetary holdings, which are now being converted to precious metals hold steady relative to the rest of the world.

2.) Create the foundation for a reserve currency which would need to be backed by a significant amount of precious metals. This cannot not be accomplished unless the precious metals are controlled by the Chinese and their citizenry. In the future the introduction of a “gold-backed” yuan could be introduced which I believe would be readily accepted for international trade.

The obvious implications of this new Chinese demand is staggering.