Jump to content

China Becoming Largest Buyer of Gold


Recommended Posts

China is poised to snag the title of the world's biggest gold buyer, a feat that could support prices of the precious metal as well as accelerate the global bullion market's shift eastward.

Gold purchases by Chinese consumers jumped 41% last year to a record, according to data released Monday by the China Gold Association. China has long had a cultural affinity for precious metals, and the increasing affluence of consumers there, along with more relaxed investment restrictions, has boosted the country's demand for gold bars and jewelry alike.

The increase was enough to overtake India, which for decades, if not centuries, held the No. 1 spot, according to estimates from several analysts.

Continue reading at the Wall Street Journal http://online.wsj.com/news/articles/SB10001424052702303650204579374111722233566?mg=reno64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424052702303650204579374111722233566.html

Link to comment
Share on other sites


China is importing huge amounts of gold, 1,051 tons through Hong Kong alone since 2010. It has been suggested that the recent decline in gold price was orchestrated by JP Morgan to gain favour and influence (buying opportunity) with their Chinese clients and powerful politicians, but now the available supplies of gold for that purpose are drying up,  At the current rate of accumulation, in addition to all domestic gold mined, Chinese gold reserves held by the goverment could exceed the 8,133.5 tons said to be held by the U.S. in as little as four years, but whether the U.S. amount actually exists is a secret - there has been no actual audit in more than 60 years. Recently, Germany announced it's intention to repatriate all its foreign-held gold reserves, some of which are held in the U.S., but apparently it will take up to seven years to get it back. Something's not right.

Link to comment
Share on other sites

Canada once had a large gold reserve that was sold cheaply at fire-sale prices many years ago, especially during the Trudeau years when deficit spending became popular. There's very little gold left in the vaults. Now the government plans to melt down thousands of $5 and $10 gold coins it minted in the early 1900's to reduce the deficit and balance the budget by next year.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...