Gold Moving East? Here's Why It Doesn't Matter | Phil Low

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Phil Low challenges the widespread concern over China's massive gold hoards, arguing that their accumulation of gold is not something to fear. According to Low, the notion that whoever controls gold makes the rules is flawed, as history shows that regions with an overabundance of gold often suffer from economic stagnation and misallocation of resources. He compares the situation to past gold rushes, such as in California or the Spanish Empire, where gold influxes led to economic imbalances rather than prosperity. Low suggests that China's gold hoarding, while impressive, won't necessarily translate to long-term stability, especially considering the country's internal economic mismanagement and lack of public trust in its currency. Ultimately, he stresses that concerns about China's gold reserves are overblown and that the real danger lies in overestimating the value of gold as a cure-all for economic collapse.