Loading ...“So gold is going to have to go up dramatically because at today’s prices, its dollar value is not that much. My calculations, Eric, are for gold to reach $19,000. And we are getting so close to the point where China says, ‘We’ve got 4,000 tonnes (or so of gold). Then (later) they may say they have 8,000 tonnes and all the sudden they are the biggest gold holder in the world. And then they start backing their yuan with gold.
What currency are you going to hold? If you see the yuan being partially backed by gold and then you see the U.S. printing money like its going out of business, what currency do you want to own? It’s clear that all these infrastructure banks and the BRIC bank and other institutions that China is setting up that are going to govern the East are going to do their transactions in some of currency that is backed by gold.”