This again demonstrates the general ignorance of Western societies on the reality of China. With their own dogmatic view of communism, they tend to see that the Chinese government behaves like an Orwellian society. When did the Chinese government tells its citizens to buy precious metals? Why just because it comes from the state-owned TV and you think that this must be the message sent out by the government’s “propaganda”? Has it ever occurred to you that banks in China are in ultra-competitive capitalistic fights for customers and capitals and that they see precious metals as the next way to make big money so they are just promoting an alternative investment products to the public?

China today, in my view, in many ways is far more hand-free capitalistic then the US. So your false premise can lead to this false conclusion that “it would be highly problematic should gold and silver subsequently take a nose dive.”