Opportunity Knox

China is warming to gold. The reserves agency has increased its holding of the yellow metal by 75% over the last six years. “Oh, yes”, say the gold bugs. “The folks in Beijing see inflation coming and the dollar’s value going, and want to get their hands on something solid.” But don’t bet on a Chinese gold rush. The Chinese authorities certainly aren’t happy holding some $1.4 trillion of their $2tr in reserves in greenbacks. Gargantuan US fiscal deficits, partly financed by printing money, add t...