Chinese Economics Thread

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Han Patriot

Junior Member
Registered Member
SanWenYu said:
China's gold reserve is far from enough to back up Yuan though.

The
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that there are about 244,000 metric tons of gold have been discovered on earth. That's even including the 57,000 tonnes still buried deep underground.



As we speak on Mar 15, 2022, the gold price is about US $1,950 per ounce, give or take. We can even use a slightly higher price of US $2,000 per 25 grams for easier calculation. Then 244,000 tonnes of gold are worth about 19.52 trillion US dollars. That's not a lot.
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That's assuming gold stays at 2000$ per ounce. There is an article about how gold would shoot up to 20k an ounce if China declares Yuan backed by gold. 30 000 metric tonne is a conventional estimate for the amount of gold China is storing.
 
O

OppositeDay

Senior Member
Registered Member
Han Patriot said:
That's assuming gold stays at 2000$ per ounce. There is an article about how gold would shoot up to 20k an ounce if China declares Yuan backed by gold. 30 000 metric tonne is a conventional estimate for the amount of gold China is storing.
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If gold is only at 20k rather than 2k because yuan is backed by gold, then what's point in preferring yuan to a fiat currency? The assurance that you will keep at least 10% of the value?
 
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