My Dear Extended Family,
This comment from Monty is more powerful than the repatriation discussion or any of the popular comments by gold writers.
A little comment on Mr. Zhang from the Peoples Bank . It comes as no surprise that China in the last 12 months from August 2011 through August 2012 decreased their ownership of US treasury securities from $1.278 trillion to$1.153 trillion. This represents a decline of about 10% according to the US Treasury.
Then on November 8, 2012 Zhang Jianhua, an official of the Peoples Bank of China (the Chinese central bank), stated "The Chinese government should not only be cautious of the imported risk caused by rising global inflation, but also further optimize its foreign exchange portfolio and purchase gold assets when the gold price shows a favorable fluctuation."
Our translation of his central banker speak is… China should buy gold on price declines and not buy so many foreign currency bonds.
We strongly agree with Mr. Zhang. Clearly he knows that there is continued global inflation ahead.
Love to you and the family,