The year has just begun but the financial market shows clear signs that China is going to overtake India as far as gold consumption is regarded. Only in the previous year China managed to import close to 600 tons of gold. If we were to make some calculations we will see that this actually means a quarter of the global mine production. China's plan for the future is to increase the country's gold reserves to 5000 metric tons of glittering metal.
It is clear that China is trying to improve its gold reserves in order to be near of what is happening in other Western Countries. This means that it will actually manage to absorb most of the world's gold production. But as it comes out the Chinese officials are coy about releasing any accurate information on how much the gold reserves have risen. Financial analysts say that this behavior actually has a very simple explanation: by withholding the exact percentage they are stopping a possible immense rise of the price of the yellow metal. Bottom line is that all these actions has transformed China in one of the big gold players on the international market.
India, the world's biggest consumer of gold will probably be over throne in by the China in the years to come, especially if they continue to purchase gold at the current rate. If the Indian investors seem to have become nervous when it comes to purchasing gold as an effect of the rising prices of the glittering metal, the Chinese don't seem to have a serious problem with this. This has become obvious by the fact that the Chinese government has allowed the public to buy gold as until recently this activity was banned. Also various laws regarding mining for gold are also facilitating gold ownership.
Against all odds the government actually encourages the people to put at least 5 percent of their savings in gold. If an average Chinese would do this at the end of only one year he would have saved 40% of his salary in the form of precious metals. Compared to what is happening in the West, most families are lucky if they can end the year without debts.
It is clear that China is trying to improve its gold reserves in order to be near of what is happening in other Western Countries. This means that it will actually manage to absorb most of the world's gold production. But as it comes out the Chinese officials are coy about releasing any accurate information on how much the gold reserves have risen. Financial analysts say that this behavior actually has a very simple explanation: by withholding the exact percentage they are stopping a possible immense rise of the price of the yellow metal. Bottom line is that all these actions has transformed China in one of the big gold players on the international market.
India, the world's biggest consumer of gold will probably be over throne in by the China in the years to come, especially if they continue to purchase gold at the current rate. If the Indian investors seem to have become nervous when it comes to purchasing gold as an effect of the rising prices of the glittering metal, the Chinese don't seem to have a serious problem with this. This has become obvious by the fact that the Chinese government has allowed the public to buy gold as until recently this activity was banned. Also various laws regarding mining for gold are also facilitating gold ownership.
Against all odds the government actually encourages the people to put at least 5 percent of their savings in gold. If an average Chinese would do this at the end of only one year he would have saved 40% of his salary in the form of precious metals. Compared to what is happening in the West, most families are lucky if they can end the year without debts.
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