China Hoards Gold but Won’t Let Its People Touch Bitcoin | Cory Klippsten #Gold #China #GoldReserves

Gold appears to be at least one part of the escape valve strategy for the party in China. >> Gold's now up about 9% of China's reserves up from 8 in July, that according to the World Gold Council. Uh Beijing let 10 big insurers into the the gold pilot, capped at 1% of their assets. Last week the Chinese, well, I shouldn't say the Chinese, it's the Shanghai Gold Exchange told the big banks to shut down leveraged gold trading for retail customers. And then of course, you know, we'll talk about this Corey, Beijing banned Bitcoin trading back in 2021. Uh so that's kind of the machinery. You wrote this morning that the Communist Party is perfectly happy for its people to buy gold and uh does almost everything it can to stop them from buying Bitcoin. So when you say China can control gold, what exactly can it control here? >> Really, it's just pointing out the physical nature of gold and the fact that when you're traveling across a border or going through customs, uh they can see whether you're bringing gold. So ultimately, its physical nature is what causes its historical centralization in vaults and uh you know, so it's just it's something that within the fence, they're okay with people, you know, making that play instead of continuing to pump a dead real estate bubble that they've been dealing with for quite some time and relatively elegantly, all things considered, over the last few years. Uh and gold appears to be at least one part of the escape valve strategy for the party in China.