60 Countries Invest In China’s “Silk Road” Gold Fund
by Dave Kranzler, Investment Research Dynamics
China has set up a gold sector fund that will help facilitate gold purchases by Central Banks in the countries which are part of China’s new Silk Road development project. The fund is expected to raise 100 billion yuan ($16 billion) to invest in physical gold and in mining companies in countries along the Silk Road.
China is the world’s largest gold producer, and also a major importer and consumer of gold. Among the 65 countries along the routes of the Silk Road Economic Belt and the 21st-Century Maritime Silk Road, there are numerous Asian countries identified as important reserve bases and consumers of gold.
This move by China is another economic and geopolitical blow to the United States. Just like the U.S. is not participating in the Asian Infrastructure Investment Bank, it will not be investing in this new gold bullion and mining company fund.
The area and population covered by the new Silk Road will become world’s largest economic bloc in the world. Several of the United States’ traditional economic/military allies are participating in both the AIIB and in this new gold fund, in defiance of U.S. coercion against investing in these projects.