China and Venezuela to Develop Gold Mine

09/23/2012 - For immediate Release: China and Venezuela to Develop Gold Mine This news falls squarely into the ‘Isn’t that interesting’ category. China International Trust and Investment Corp of China and the government of Venezuela agreed that the former will mine what may be the largest deposits of gold in the world. Sources estimate there are 17 million ounces of gold that could be recovered from Las Cristinas gold mine in the Bolivar state of Venezuela. China and Venezuela ties are close as China has extended $36 billion in loans in return for oil. China is investing in gold from Venezuela with US cash traded for Chinese exports. US dollars are being turned into gold sitting in Chinese bank vaults and gold in Chinese products exported worldwide. Not a bad play for China to unload a crumbling ‘reserve currency’ in return for the real wealth of healthy industry and a currency made stronger by increasing the gold reserves backing it. What the US gets from this is to rely more on Chinese produced goods and to borrow more Chinese money in exchange for paper. One thing is clear, The US will have to produce more than government bonds to avoid going the way of all empires before. With that, gold certainly remains in play.

Submitted from http://www.goldbuyinc.com