Veteran investment expert Richard Russell claims China is intent on obtaining leadership of the global economy by fortifying its official currency with the partial backing of the precious metal.
According to Russell in an interview with King World News, international investors are becoming increasingly averse to the US dollar as the Federal Reserve vitiates the fiat currency with multiple rounds of monetary easing.
Russell sees the Chinese yuan as an inevitable rival and threat to US dollar dominance, and believes that the "yuan will ultimately be partly backed by gold" as "part of China's plan to take over leadership of the world."
The staunch gold advocate cites historical precedent, noting that in the past the nation with the most powerful military was also the provider of the world's reserve currency. The US dollar replaced the pound as the world's preeminent currency once US military might surpassed that of the British Empire, and in Russell's view China is angling to achieve a similar transition right now.
Despite conceding that gold is overbought at present, Russell also expects the precious metal to break through the USD$1,800 threshold due to a lack of secure or viable investment alternatives.
Image of Richard Russell courtesy of Youtube