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Twisted Titan
19th December 2010, 05:16 PM
http://www.commodityonline.com/news/Gold-investment-thrives-in-Chinese-households-34647-3-1.html


The lure for the yellow metal continues to grip Chinese households. The number of households that are buying gold across China is steadily going up.

China’s craze for gold is surprising many people these days. Some years back, people in China were not allowed to own much gold, thanks to the strict economic rules that the communist China had stipulated. China still remains a one-part communist country; but these days, the Chinese government allows its citizens to buy and possess as much gold as they like.




In the past, gold production in China used to lag behind South Africa, United States and Australia. But in 2007, China overtook all these countries to emerge as the largest gold producer in the world. And Chinese government announced early this year that the country wants to increase its gold reserve holdings. To put more specifically, China is eager to replace US dollar as its foreign exchange reserve with gold.

While the Chinese government has been officially trying to mop up gold reserves, people across the country are simply buying gold. Some bullion analysts have already forecast that eventually China will emerge as the largest gold consuming country, an honour that India now holds. Indian households are estimated to be owning 15,000 tonnes of gold.

What is it that is driving Chinese people to buy more and more gold? How is it that the people of a community country are crazy for gold investment?

“People are just buying gold coins, bars and jewellery as family investment. Gold has emerged as part of the family investment culture. Probably, Chinese households will beat India as the largest physical holder of gold in few years,” says Peter Lee, a bullion specialist based in Beijing.

He said one of the main reasons for the massive physical buying of by Chinese households is the huge savings rates of people in that country. Lee is of the opinion that gold demand in China remains as a form of investment and saving, not of spending.

Whatever be the reasons for China's massive household savings rate (a BIS paper last month suggested it's because household earnings are falling as a proportion of national income), a recent World Gold Council report shows that private consumers are putting ever-more money into physical gold.

Here are some facts on the Chinese going on a gold buying spree:

According to the World Gold Council, gold demand in China has risen by 26% in the last one decade.

In the 30 months between Jan. 2008 and June 2010 alone, private households bought more gold (1057 tonnes) than the central bank reports in its entire gold reserves (1054 tonnes).

If the gold buying spree by Chinese households goes on at the current pace, private gold Chinese demand may overtake Indian gold demand by 2014 (if not sooner), giving the world's two most populous nations two ounces of gold in every five sold worldwide that year.

Chinese household savers have bought almost half as much gold since the global financial crisis started in mid-2007 as all investors living in the developed West.

Nearly 16% of global gold demand went to Chinese households between July and October in 2010, rising from the previous three-year total of 14%.

Lee points out that gold buying has landed Chinese households into a cultural shift in history. “Chinese people are now buying gold coins, bars, jewellery etc. which they believe are efficient forms of gold investment. Gold has taken a cultural shift to become an investment model across China,” Lee added.

Silver Shield
19th December 2010, 05:45 PM
If we are in a race to the bottom in us competing against the global labour pool.

Americans have a far chance to buy a lot or silver that the majority of the rest of the world could not dream of buying.

Last week I facilited 4 of my students buy 4 monster boxes through Apmex.

Hopefully it will be the first of many.

I want to hear JP scream mercy.

gunDriller
20th December 2010, 04:59 AM
China’s craze for gold is surprising many people these days. Some years back, people in China were not allowed to own much gold, thanks to the strict economic rules that the communist China had stipulated. China still remains a one-part communist country; but these days, the Chinese government allows its citizens to buy and possess as much gold as they like.


when a society of one Billion people go crazy for something - it has an effect. especially if they're a net importer.

i wish they'd go crazy for surfing. out of that enormous talent pool, there's got to be some young people who can challenge Slater.

Still Barbaro
20th December 2010, 06:47 AM
The Chinese are greedy c*nts. I know all too well, living close to the border. And yes, they could be the next GSUSers, but the issue is, their drive for the "yellow metal" is not unique, but the norm.

gunDriller
20th December 2010, 08:05 AM
The Chinese are greedy c*nts.

greedy compared to who ?

Shami-Amourae
10th August 2011, 11:34 PM
http://www.youtube.com/watch?v=D6bK3i41uew