Its been almost 5 years since China publicly announced its gold reserve – there are rumors and speculations going around the world wide web that indicate China has been importing such amounts of gold that it actually has more than what the Fed claims to have in its possession.
The last “official” announcement detailing China’s gold holdings was in 2009 – ringing in a total of 1,054 tonnes. Compared to their previous official holding, announced six years prior, the new total represented a dramatic 75% increase in Chinese gold holdings.
Starting at the time of China’s last official announcement, we’d need to add another 2,873 tonnes to China’s “official” holdings, just to account for imports and domestic production alone. That would put China’s current “known” holdings at 3,927 – well above Germany as the second largest gold holding nation in the world.
When you start adding up the stealthy, hard-to-track sources of gold – black market gold from Africa and South America (and maybe Iran) exports, global gold mining from semi-national Chinese firms or buyouts, and the idea that China is urging their own citizens to hoard gold – you’ll notice that China’s gold hoard is closer to 7,000 tonnes, or more!
If China announces anything close to this number of tonnes of gold this year - there are many things that could follow through – most immediatrely would be an hyperinflation of the dollar and this could open the need to print more money in Panama. Why?
It is possible that the new government of Panama elected this year 2014 will have to print more balboas – There are Approximately: 185,000 people working for the governement – costing 180,000,000 per month. The current government already began minting 1.00 Balboa coins, costing literally a quarter of what its valued at currently ($0.25) – what or who will stop Panama from minting 5.00 and 10.00 balboa coins?
We could begin to see Panamanians talking more about gold and silver now more than ever before – to level the game for the coming government it seems like making more balboas to be used nationally makes sense if we continue to grow, as we have in the last decade.
With hyperinflation as a current important topic in international relations – We envision more investments towards sustainable biotechnologies to meet with human basic needs in abundance thus creating a sense of security beginning in individual communities – expanding towards a whole national plan.