Given the proportions of the global economic crisis triggered by the financial one, there are not many countries that can take pride in their economic growth, as China surely can with its increase of 8% last year. This has been reflected in higher incomes and, as such, larger savings, most people heavily buying gold - considered safer than savings in Yuan, which could be affected by inflation.
In these conditions, analysts consider that the Chinese GDP will beat the American one in seven or even less years. And no one would be taken by surprise, if looking, for instance, at how quick China was in replacing India as the world's largest gold consumer (a fact recorded in the WGC report of last year). Besides, it's well-known that the US has troubles with recession and with controlling its galloping debt and its fast increasing interest. And last but not least, they have a stunning trade deficit of 28 billion dollars with China precisely, to which they have also sold a substantial part of their debt in the form of treasuries.
At the same time, China has the biggest gold holdings worldwide, and we are speaking of trillions of dollars. And this country is not only the most important gold bullion miner in the world, but it's expanding abroad as well, its largest mining company intending to produce 40% of gold overseas, in countries with significant gold resources like Venezuela, Brazil, Russia or Mongolia. And while this company produced 32 tons of gold in 2010, this is still only 10% of the Chinese gold produced that year!
On the other hand, the national demand was 12% higher last year than in the previous one. So far, the gold jewelry and gold bar sales have increased by an incredible 40% against last year, pushing the gold price up to 338-375 Yuan, without, however, putting an end to the frantic gold rush.
These figures make it crystal-clear that people have money as a result of the economic growth of the entire country, and that the gold rush is the expression of their need for investing this very money in a reliable asset. In short, if we consider just the increase in gold production and consumption there, we cannot be wrong if saying that China is already the leading economic power, globally.
In these conditions, analysts consider that the Chinese GDP will beat the American one in seven or even less years. And no one would be taken by surprise, if looking, for instance, at how quick China was in replacing India as the world's largest gold consumer (a fact recorded in the WGC report of last year). Besides, it's well-known that the US has troubles with recession and with controlling its galloping debt and its fast increasing interest. And last but not least, they have a stunning trade deficit of 28 billion dollars with China precisely, to which they have also sold a substantial part of their debt in the form of treasuries.
At the same time, China has the biggest gold holdings worldwide, and we are speaking of trillions of dollars. And this country is not only the most important gold bullion miner in the world, but it's expanding abroad as well, its largest mining company intending to produce 40% of gold overseas, in countries with significant gold resources like Venezuela, Brazil, Russia or Mongolia. And while this company produced 32 tons of gold in 2010, this is still only 10% of the Chinese gold produced that year!
On the other hand, the national demand was 12% higher last year than in the previous one. So far, the gold jewelry and gold bar sales have increased by an incredible 40% against last year, pushing the gold price up to 338-375 Yuan, without, however, putting an end to the frantic gold rush.
These figures make it crystal-clear that people have money as a result of the economic growth of the entire country, and that the gold rush is the expression of their need for investing this very money in a reliable asset. In short, if we consider just the increase in gold production and consumption there, we cannot be wrong if saying that China is already the leading economic power, globally.
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