| Breaking
from
Newsmax.com
China Massively
Buying Gold
The Wall Street Journal
reports Friday
that
gold prices are
soaring to record highs
as a new powerful factor
has emerged as a driver
of that rally — China.
According to the
Journal, China is now
buying huge amounts of
gold fearing inflation
as the
Federal Reserve
begins a new set of
quantitative easing
policies.
The paper’s report —
“China Buys In to Gold’s
Allure” — cites key data
released by China’s
state-run Xinhua news
agency showing that
China imported 209.7
metric tons of
gold in the first 10
months of this year.
That’s a five hundred
percent increase
compared to the same
period in 2009.
China’s dramatic move
into the
precious metals market
gives weight to rumors
that
Beijing fears
massive dollar
devaluation. Gold is
considered a store of
value during periods of
currency depreciation
and economic
instability.
“The trend is
undeniable, gold demand
in China is rising
rapidly,” Walter de Wet,
Standard Bank head of
commodity strategy, told
The Wall Street Journal.
Editor’s
Note: A powerful new
book warns of the end of
the “American Empire”
and a massive dollar
devaluation that
investors must protect
against — please read
about it in the coming
“Great Super Cycle” —
Click Here Now.
Xinhua reported that
China purchased more
than 209 metric tons of
gold during 2010. The
Journal reported such
imports came in addition
to the significant
quantities of gold China
mines each year. Today,
China leads the world in
gold production, and the
World Gold Council
estimates that China’s
gold demand could double
in 10 years.
Many economists had
long viewed gold as a
stagnant asset. The
Economist recently
predicted gold prices
would sag, as Indian
consumers who buy the
most gold for jewelry,
would cash in their
caches as the
precious metal
rallied above $1400 an
ounce.
But such sales are
apparently being offset
by both
Chinese government
purchases, as
well as a new booming
Chinese consumer market
in gold.
In a speech at the
China Gold and Precious
Metals Summit in
Shanghai
Thursday, exchange
chairman Shen Xiangrong
said the size of China’s
gold purchases this year
were big enough to
absorb all of the gold
that the
International Monetary
Fund had shed
during that time period,
the Journal article
stated.
And just this week,
the Chinese securities
regulator approved the
country’s first gold
fund designed to invest
in overseas-listed gold
ETFs.
Earlier this year,
China’s government
loosened its
restrictions on gold
purchases by
financial institutions
and individual
investors. In August,
China began allowing
more banks to import and
export gold.
Until several years
ago, China’s gold market
was strictly controlled
by the country’s
central bank.
Editor’s
Note: A powerful new
book warns of the end of
the “American Empire”
and a massive dollar
devaluation that
investors must protect
against — please read
about it in the coming
“Great Super Cycle” —
Click Here Now.
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