China Accumulates Gold For The “World Dream”
- 30 Dec 2013 22:46
- Koos Jansen
Gold will return to the international monetary system and China will have a great influence in how this will play out. In 2013 China has imported 2000 tons of gold, quickly becoming one of the most powerful voices at the IMF table. In the following translation we can read how Mr. Zu He Liang, director at the Chinese Gold Market Research Center, sees a future for gold.
Translated by Yi Zhang from Dublin California.
Closely Followed Gold Prices reflects the Pursuit of the “World Dream”
By Zu He Liang
May 7, 2013, Beijing – The 2013 World Gold Market Trend Conference. This conference was co-sponsored by the Capitol University of Economics and Trade, The Chinese Gold Market Research Center, Economic-Trade Gold Limited and the CMP Group. The 2013 World Gold Market Report was broadcasted live exclusively through the He-Xun Gold Network. At the conference, Mr. Zu He Liang, Director of the Chinese Gold Market Research Center stated that the fact that the entire world is paying close attention to the price of gold shows that we are all pursuing a “World Dream”. The “World Dream” is nothing but a pursuit for world peace, the healthy and stable development of the world’s economy, and a world which is fair to every country and its citizens. The pursuit for gold reflects mankind’s pursuit for the “World Dream”.
Gold represents mankind’s yearning and aspiration for stability, and healthy economic development; it is a wonderful wish. You may all know the following: In 1917, the British proposed a gold standard. From the formal establishment of the standard in 1816 to the beginning of the First World War in 1914, there were 59 countries that implemented the gold standard. During the implementation process, every country voluntarily participated in and proactively established this system. During the span of the 100 years in which the gold standard was established, the world economy was quite stable- there was no inflation, and wealth distribution was very fair. Due to the fact that the gold standard is such a great standard, every country who participated benefited a great deal from it. This is the main reason why so many countries voluntarily followed this standard. By proposing such a standard, the UK had not only benefited a great deal from it, but also brought numerous benefits to all of the participating countries. This is why the gold standard had been kept for a very long time.
After the implementation of the gold standard, why was the United States willing to take over the baton and implement the Bretton Woods System? The focus was also to stabilize the economy, and to have other countries peg their currencies to the US dollar. In the course of implementing the Bretton Woods System, the dollar’s dominance was established. The interest of other countries will have to follow that of the US. Therefore, when there are conflicts of interest between US and other countries, such a system cannot last forever. The Bretton Woods System was later disintegrated. The world financial crisis in 2008 is the worst financial crisis in history; why is it the worst? The reason stems from the fact that there is not an objective “thing” to measure national interest with the interests of the world. We haven’t yet found an alternative to gold which can play a better stabilizing role under these circumstances. We have been trying- for example, we found this thing called SDRs, but SDRs have its limitations. It’s impossible for SDRs to play the same stabilizing effect as gold.
During the future development, President Xi proposed the Chinese dream. In the process of chasing a “World Dream” through the pursuit of gold, we aspire to seek peaceful development in the world. In this process, we still haven’t found a stability factor which is inherent in the system. Since gold had played a stable role in the process of human development, we will put focus on it. We think gold will continue to draw much attention from the whole world.
Last year, we organized a seminar on the Chinese gold market; I suggested that we are now in an era of gold investment. In the process of realizing the “World Dream”, prior to the second golden age (standard), there are many opportunities for gold investment. Behind these reflections, we should think more on the strength of gold.