"Source One International" International Business - (China Buying Gold)

New York, New York (PressExposure) September 15, 2009 -- "Source One International" is thought to believe that the US dollar is rapidly losing favor with the Chinese authorities as the Federal Reserve looks set to continue its policy of quantitative easing.

Despite the hawkish rhetoric that accompanies Federal Open Market Committee (FOMC) statements, "Source One International" believes that the likelihood is that the Federal Reserve may have to extend the treasury buybacks in order to further increase the amount and velocity of credit through the US financial system or face a double-dip recession.

The QE policies are causing China considerable consternation and, despite their public assurances of support for and empathy with the US authorities' situation, the Chinese government is accumulating gold on price dips. It recently announced that it had doubled its gold reserves to 1054 tonnes.

Beijing considers the monetary expansionist policies of the Fed to be problematic as it reduces the purchasing power of its near-$700bn in US treasury bonds and agency debt.

"Source One International" has long advocated the buying and holding of gold as a means of preserving its clients' wealth. It advises investors to ignore comments suggesting that gold has no intrinsic value adding that if $1000 and 1 ounce of gold buried 50 years ago were dug up today, the gold would still buy the same quantity of goods whilst the $1000 would buy only a fraction of what it could at the time it was buried.

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Press Release Submitted On: September 15, 2009 at 9:56 am
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