Authored by Lawrence Thomas via GoldTelegraph.com,

Chinese gold companies continue to pursue and acquire mining companies aggressively.

The recent acquisition spree by Chinese companies should send a signal to the market that the country will be strategically utilizing the precious metal in the future with regards to it being a reserve asset. 

It was interesting to learn from Zerohedge that Beijing is beginning to sound the alarm about the dollar’s reserve currency status: 

Guo Shuqing, chairman of the China Banking and Insurance Regulatory Commission, delivered a strong warning on the U.S. currency last week, which might explain all of the gold mining takeovers.

He made four points in a speech at the Lujiazhui Forum in Shanghai:

• The Fed is the de facto central bank of the world. When its policy targets its own economy without considering the spillover effect, the Fed is “very likely to overdraft the credit of the dollar and the U.S.”

• The pandemic may persist for a long period of time, and countries keep throwing money at the problem with a diminished impact. “It is recommended that you think twice and reserve some policy space for the future.”

• There is no free lunch. Watch out for inflation.

• Financial markets are disconnected from the real economy, and such distortions are “unprecedented.” It’s going to be “really painful,” when the policy withdrawal starts.