china on gold buy binge 750tons bought in 2011

Hey Guys

China is set to buy up 750tonnes of Gold in 2011!

This equates to 24million ounces of gold, and this demand is set to grow each year by 6-12% as its Central Bank continues to shore up its FInances with Gold, instead of US Treasuries!

What is also changing is the 1.3Billion Chinese citizens who are becoming wealthier and investing in the safe haven yellow metal!

Let alone another 1.2Billion Indians doing the same thing.

With gold production falling every year for the last decade, only slightly increasing by 0.5% in 2011, supply remains constrained, while demand continues to surge.

This will keep the price of gold high, as companies like IndoChine complete their JORC Upgrade, increase this Upgraded JORC Resource, continue to drill and complete the PFS and DFS. With Gold Forecast to rise above $2000/Oz in 2012, this gives even more value to Mt Kare and IDC.


China on Gold-Buying Binge, Altering World Market Prices


By Esther Tanquintic-Misa | November 23, 2011 7:46 PM EST

China's think tanks are on it again. Long before the current fiscal crisis, the country's economists had long prepared the Asian country to counter possible ill effects of a slowing economy. Proof of that had shown China's continuing resilience compared to the Eurozone's impending financial crash.
View Full Image

Lisi Niesner/Reuters
Gold pellets

Related Articles
RBA-Governor announcements
India’s 2011 Gold Imports Could Reach 1,000 Tons Despite Record Prices
RBA: Euro Crisis is Serious and Australia Has Reasons to Worry

Related Topics

China
Gold
Gold Prices
Retail
Investment
Silver

And it what seems to be another macro-economic preparation, China has been encouraging its citizens to buy and hold physical gold, either in jewelry, coins or in bullion bars, in a bid to build financial reserves in assets stronger than the U.S. dollar, euro, and other weakening currencies.

China has been buying into the global gold market and had made it easier for investors to buy and invest in the yellow metal. In fact, Chinese consumer demand for gold rose 25 per cent overall this year, higher than the 7 per cent global average.

"The bottom line (really is), China wants to dislodge the dollar as the world's main reserve currency," Larry Spears wrote in moneymorning.com.

More News
India’s 2011 Gold Imports Could Reach 1,000 Tons Despite Record Prices
Is the Gold Price Going to Fall to $1,500?
Drilling at Serra Intersects 7m @ 6.10g/t Gold at Coringa Project, Brazil

Must Read
Bush, Clinton and ObamaThe U.S. Presidency: Only Ivy Leaguers Need Apply
aSustainable Economic Growth: is Income Equality the Answer?
Sponsorship Link
How to earn money from currency trading

Like us on Facebook

The World Gold Council (WGC), in March 2010, predicted that Chinese gold demand would double by 2020. "We now believe this doubling may, in fact, be achieved far sooner," Albert Cheng, WGC Far East Managing Director, said.

Years ago, the Chinese were prohibited to buy physical gold or else be imprisoned, until 2002, when government lifted the ban. Since then, federal government created policies and encouraged the people to own the precious yellow metal. In China nowadays, state-owned China Central Television even airs news programs describing how fast and easy it is to buy and sell gold and silver. China further pushed gold towards its citizens, making in within hands' reach, when it launched the gold vending machines, letting customers easily buy gold coins and bars using cash, debit cards and credit cards.

These developments did not only put a pressure on gold prices, but likewise gave the Chinese yuan a bigger role in global trade.

There is currently a new "Renminbi Kilobar Gold" which is the world's first offshore yuan-denominated spot gold contract. It started trading on the Hong Kong's Chinese Gold & Silver Exchange in mid-October. It is open to individual Chinese investors and is denominated in something other than Hong Kong dollars.

Spears said that while the contract primarily aims to entice Chinese retail investors, foreign private and institutional investors who prefer yuan-denominated products may consider and also be attracted to it as an alternative reserve currency to the embattled dollar and euro.

"This will increase the yuan's role in global investment, something China has been working on for years," Spears said.

"For Westerners who are struggling to come to terms with the notion of a disarrayed dollar, the thought of oil, gold or other commodities being priced in yuan instead of dollars has to seem about as likely as having another country put a man on the moon," Spears quoted "Money Morning" Chief Investment Strategist Keith Fitz-Gerald in May 2009. "But the Chinese yuan is already well on its way to becoming that globally accepted standard unit of exchange, and the proverbial genie, as they say, is out of the bottle."

The yuan has appreciated about 3.7 per cent this year against the dollar, but isn't expected to gain more.

To contact the editor, e-mail: [email protected]