Chinese official urges buying of gold, U.S. real estate

[TraderZones]

Quote from ASusilovic:

LOS ANGELES (MarketWatch) -- A top Communist Party research chief said Thursday that China should buy gold and U.S. real estate rather than Treasurys, according to a Reuters report.

Li Lianzhong, who is head of economics at the party's policy research office, said the U.S. dollar is poised for a fall, making gold and land better investments for China's $1.95 trillion in foreign exchange reserves, the report said.

It quoted Li as saying Beijing should also focus on buying up energy and natural resources.

http://www.marketwatch.com/story/chinese-official-urges-buying-of-gold-us-land

Makes more sense to continue getting energy assets.

Imagine if China put $2 trillion into solar, wind, wave power, nuclear plants. Plug-in cars, properly insulating all its windows and walls. They would slash their energy costs to the bone, be the market leader in alternative energy construction and get a much better return

What if they put the money into building out a couple of really good auto companies that actually could compete in USA, Europe, Japan, etc. Think Kia.Hyuandai, but 15% cheaper and equal or better quality. Their own Boeing/Airbus. Buy Toyota or Honda.

Buy farmland, privately-owned forests.

Or buy up American strategic companies. Wonder how much it would cost to buy IBM. Intel. Or "dollar cost average buying into key companies, up to 10%. They already took over Lenovo

 

[risktaker]

That's what makes it a long term low risk investment at this time. Low risk & potentially huge reward.

Quote from Debaser82:

Inflation adjusted the CRB today is at the same level as it was 40 years ago.

How can that be when recourses are supposed to be indeed depleting more and more each day.

 

[Scataphagos]

Quote from peilthetraveler:

China could buy half the worlds Gold with with 2 trillion dollars. I smell the beginnings of a gold bubble! Last one to the party is a rotten egg!!! Or i should say, last one to the party loses their life savings!

China's economy is a few $T, year-after-year. Any such $2T purchase would not be much of a solution to anything.

Not saying they wouldn't nor shouldn't do it... just not that big of deal in the big scope of their economics.

I'm sure they'd much rather buy Iowa, if the US would let them.

 

[crgarcia]

Quote from ASusilovic:

LOS ANGELES (MarketWatch) -- A top Communist Party research chief said Thursday that China should buy gold and U.S. real estate rather than Treasurys, according to a Reuters report.

Li Lianzhong, who is head of economics at the party's policy research office, said the U.S. dollar is poised for a fall, making gold and land better investments for China's $1.95 trillion in foreign exchange reserves, the report said.

It quoted Li as saying Beijing should also focus on buying up energy and natural resources.

http://www.marketwatch.com/story/chinese-official-urges-buying-of-gold-us-land

Chinese are bagholders.

Gold wouldn't do in an deflation environment.

Real state? We are not low enough yet.

 

[nutmeg]

Quote from crgarcia:

Chinese are bagholders.

That is so funny. treasuries are sooo yesterday. Real estate is the new treasury. Plenty of commercial loans coming due.

 

[cstfx]

Quote from thriftybob:

Japan made the mistake of buying US real estate, before, and got their clocks cleaned on it

Yeah, but they were buying at the highs, which would have been 3 yrs ago. If the Chinese start buying over the next few months, they are going to get some good deals.

 

[EMRGLOBAL]

Old news...China is buying hoards of gold and selling US treasurys as we speak.