Who Needs Alan Greenspan When You've Got Gold?
"Why China is buying gold."
"It would be a gamble of course," the grand old man goes on, "for China to use part of its reserves to buy enough gold bullion to displace the United States from its position as the world's largest holder of monetary gold. But the penalty for being wrong, in terms of lost interest and the cost of storage, would be modest."
"As the supply of money (of claims) increases relative to the supply of tangible assets in the economy, prices must eventually rise."