The Chinese Gold Boom
PIM of SPAIN | August 14, 2009 at 10:29 pmby
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In 1959, if the Chinese were caught with gold in their possession they were thrown in jail. The result of this policy has been widespread indifference and very little understanding for precious metals as asset class or sound money.
The Chinese government is now taking radical measures to change that.
This year 2009 – is the FIRST year that the Chinese public is allowed to own physical gold or silver. The government is now trying to stimulate “gold and silver as an investment” at every street corner.
Banking products, investment products, and check-accounts linked to gold is another opportunity. In fact, the Chinese have more precious metal investment options than Americans or Europeans, while the statistics are alarming:
In 1950, China had next to nothing in gold reserves. Today they rank 10th globally, and they are frantically mining for more on their own soil, and likely in Africa too.
For the past half a century, the Chinese had the lowest per capita consumption of gold in the world. Next year, Chinese gold demand will likely surpass that of India the highest per capita country in the world.
Question: What do the Chinese know, which the rest of the world doesn’t know?
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