China Is Preparing To Shock The World

kingworldnews.com

After another wild week of trading in global markets, today one of the top money managers in the world told King World News that China is preparing to shock the world.

Stephen Leeb:  “Someone from the IMF just said that the chances are 99 percent that China will get approved for reserve currency status.  If they do (get approved), how long before China says, ‘Now that we are approved as a reserve currency, now that the world can trade with the yuan, we want to put a little more backbone in our currency, how about backing part of our currency with gold?’  That is definitely going to happen, Eric…
 
“If you put all this together, Eric, you have a case for gold.  China is going to back their currency with gold.  

I have in front of me on my screen four different assets — gold, oil, stocks, and bonds.  And the date I have (at the beginning of the charts) is 9/30/2007.  Why is that date important?  Because that is when the world changed.  That was the beginning of the Great Recession and everything changed after that point.

Gold Vs. Stocks Since The Great Recession Began

Now, if you asked anybody:  What has been the best performing asset over these past 8 years?  The last answer you are going to get is gold.  Yet gold has outperformed bonds by about 17 percent, stocks by 30 percent, and no one knows it.

Certified planners who advise clients on how to allocate their assets, they are told, ‘Gold doesn’t count — don’t put any of your assets in gold.’ 

Yet since the Great Recession began and everything blew up, it shows that gold over an 8 year period outperformed every other asset.  And financial planners don’t even consider it when they are telling people how to allocate assets.  It’s always bonds, stocks, and cash.  No, you’ve got to have gold because…

To continue listening to the powerful audio interview with Stephen Leeb, where he discusses what is really happening with China, how it will impact the gold market and what investors need to be prepared for as the Chinese execute their longer-term plans.