No empire last forever. Even George Soros recognizes this as he notes the expanding importance of the East to the modern economic structure. Gold, silver and platinum are flowing to Chinese, India and Indonesia.
“Rupiah Means Silver in Sanskrit”
Money is usually named after precious metals. France names their money “argent” after the word for silver. Of course, Argentina derived its name because it had large silver mines. Rupiah is the word for wrought silver in Sanskrit.
Hindu culture encourages the gift of gold or silver to new brides to build their family wealth. Even during the British Empire, Indian soldiers preferred payment in silver rather than pounds.
In fact, old coins are recycled in the Hindu cultures of India and Indonesia into new garments, jewelry and statuary. Traditional markets (pasar) will have plenty of old coins in their “junk/antique” sections.
“Why is China Causing Deflation”
Capitalism survives on the continual investment into new businesses to increase more production. George Soros realizes that China in 2016 is comparable to the United States in 1950s where factories continue to grow as part of industrialization. Thus, Soros warned the Davos crowd that any Chinese cutbacks were possible causes of deflation.
The Peoples Bank of China (PBOC) is not only leading Asian economic circles, but also effecting global economic mind sets. Chinese devaluation has made its exports cheaper for consumers around the world. The problem is that many nations are devaluing their currencies at the same time.
“Gold Coins Provide Substance”
Many assets are becoming more ethereal. Like your friend on Facebook – do you know if the person is really a male or female? Electronic assets can be the same. You might have digital ownership, but question authenticity.
There is a maxim in the minds of some financial analysts: If you can’t touch it, you don’t own it. US Money Reserve President Philip Diehl discussed the value of having physical government-issued gold coins in your pockets during his US Money Reserve Podcast. China and India is purchasing more gold and silver because these are the traditional hallmarks of wealth in their ancient cultures.
Chinese and Indian concepts of wealth are leading to shifts in asset values. US Money Reserve government-issued gold coins may also be traveling East. One day, you might find these United States gold coins sold in a small antique bazaar in Bali, Indonesia or Mumbai, India.