"....while gold might scale a new peak and oil could chalk up big gains in the second half of the year, the People's Bank of China said on Friday."

And the Midas reader's reaction...

That the Chinese Government is saying publicly that gold is going higher tells you they are accumulating gold using their heavily weighted US dollar reserves, they will continue to accumulate gold and, I believe cryptically, you can interpret this comment to signal a decline in their continued support of the U.S. dollar and U.S. Treasury bonds. I say this last point because they have dropped other hints over the past few months that they have become less interested in investing in U.S. debt, including their massive unloading of U.S. agency paper on swap for Treasuries.

We saw earlier this week that globally, Central Banks were net buyers of gold last week, as opposed to their multi-year net selling of gold. It thus would appear that the writing is on the wall for end of U.S. dollar hegemony and fiat currencies in general, as the Swiss yesterday touched off a new round competitive currency devaluations to protect their export market. I don't think I need to tell anyone that they need to be buying and holding gold ahead of massive Chinese accumulation and the ongoing fiat currency devaluation wars.