Does China Need A Gold Standard? - Bloomberg's Ken Hoffman | Kitco News

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• published: 13 Jan 2016
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Analysts at Bloomberg Intelligence said it may be worth exploring a “new style” of gold standard for China to adopt. ‘While putting China on the same gold standard used by countries in the past is virtually impossible at today's price for the metal, that doesn't rule it out,’ said Bloomberg’s global head of metals and mining research, Ken Hoffman. Better-than-expected Chinese trade data eased some of the pessimism over the world's second-largest economy on Wednesday. The news comes after heavy intervention by Beijing to curtail recent declines in the Chinese yuan. Analysts estimate that the Chinese central bank may have sold $10 billion-$20 billion in the last week to prop up the yuan. ‘China is quite the mess – they have had a very hard landing in the commodity space, there is no question about that, they can sprinkle all the 7% growth pixie dust on the Chinese economy they want, it doesn’t exist,’ Hoffman said. He added, ‘They need to soak up some of that M2 – so they should come out with a gold-backed yuan so they can soak up M2 capital or else you will see the yuan devalue, devalue, devalue.’ Kitco News, January 13, 2016. Don’t forget to sign up for Kitco News’ Weekly Roundup – comes out every Friday to recap the hottest stories & videos of the week: http://www.kitco.com/newsletter Join the conversation @ The Kitco Forums and be part of the premier online community for precious metals investors: http://kitcomm.com -- Or join the conversation on social media: @KitcoNewsNOW on Twitter: http://twitter.com/kitconews --- Kitco News on Facebook: http://facebook.com/kitconews --- Kitco News on Google+: http://google.com/+kitco --- Kitco News on StockTwits: http://stocktwits.com/kitconews

Does China Need A Gold Standard? - Bloomberg's Ken Hoffman | Kitco News

• Report rights infringement
• published: 13 Jan 2016
• views: 3958

Analysts at Bloomberg Intelligence said it may be worth exploring a “new style” of gold standard for China to adopt. ‘While putting China on the same gold standard used by countries in the past is virtually impossible at today's price for the metal, that doesn't rule it out,’ said Bloomberg’s global head of metals and mining research, Ken Hoffman. Better-than-expected Chinese trade data eased some of the pessimism over the world's second-largest economy on Wednesday. The news comes after heavy intervention by Beijing to curtail recent declines in the Chinese yuan. Analysts estimate that the Chinese central bank may have sold $10 billion-$20 billion in the last week to prop up the yuan. ‘China is quite the mess – they have had a very hard landing in the commodity space, there is no question about that, they can sprinkle all the 7% growth pixie dust on the Chinese economy they want, it doesn’t exist,’ Hoffman said. He added, ‘They need to soak up some of that M2 – so they should come out with a gold-backed yuan so they can soak up M2 capital or else you will see the yuan devalue, devalue, devalue.’ Kitco News, January 13, 2016. Don’t forget to sign up for Kitco News’ Weekly Roundup – comes out every Friday to recap the hottest stories & videos of the week: http://www.kitco.com/newsletter Join the conversation @ The Kitco Forums and be part of the premier online community for precious metals investors: http://kitcomm.com -- Or join the conversation on social media: @KitcoNewsNOW on Twitter: http://twitter.com/kitconews --- Kitco News on Facebook: http://facebook.com/kitconews --- Kitco News on Google+: http://google.com/+kitco --- Kitco News on StockTwits: http://stocktwits.com/kitconews