Copper. The New Gold Standard.
The Gold Standard, as the Wikipedia says, is a monetary system in which a region’s common media of exchange are paper notes that are normally freely convertible into pre-set, fixed quantities of gold. Now there are reports that gold could be losing its sheen as the most valued metal. Sometime ago there were reports, check out this discussion thread from 1998, that Warren Buffet was buying up silver, up to 20% of all the newly minted silver to be precise. Now, this story from The Telegraph UK talks of China investing in various metals, particularly copper. China’s State Reserves Bureau (SRB) has instead been buying copper and other industrial metals over recent months on a scale that appears to go beyond the usual rebuilding of stocks for commercial reasons, says The Telegraph. John Reade, metals chief at UBS, said Beijing may have a made strategic decision to stockpile metal as an alternative to foreign bonds. "We’re very surprised by Chinese demand. They are buying much more copper than they will need this year. If this is strategic, there may be no effective limit on the purchases as China’s pockets are deep." Read more here.