6 September 2009

China alarmed by US money printing

Cheng Siwei, former vice-chairman of the Standing Committee and now head of China’s green energy drive: “Gold is definitely an alternative, but when we buy, the price goes up. We have to do it carefully so as not to stimulate the markets”.

Quoted by Ambrose Evans-Pritchard today in the Telegraph. Pritchard goes on to say:

“The comments suggest that China has become the driving force in the gold market and can be counted on to buy whenever there is a price dip, putting a floor under any correction.”

d. sofer