IDC indochine mining limited

Hey IDC HoldersFirstly! Congratulations to the IndoChine Board,...

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    Hey IDC Holders

    Firstly! Congratulations to the IndoChine Board, Management, Geologists and Project Managers for winning the "Discovery of the Year Award" last week at the Mines and Money Conference in HK. A magnificent achievement!

    This is a very very exciting statistic released by Forbes for Gold Mine developers like IndoChine!

    The Chinese have $5.2Trillion in CASH in Bank deposits! What does this mean?

    It means that even a small RRR reduction or interest rate reduction will mean a massive increase in cash coming out of lower interest rate cash accounts and term deposits to pump into the Chinese economy.

    Precious metals nee GOLD!!!

    Property will also get a lift, albeit in a more controlled manner since there are govt controls in place to limit any significant price rise.

    The Chinese public will be keen to ensure their savings are protected and will chase higher returns by investing in Gold Bullion and Chinese and HK shares.

    All these asset classes will receive a large boost as the PBOC begins its monetary stimulus packages!

    Cheers Nectar


    Chinese Have $5.2 Trillion Bank Deposits--More Than GDPs Of Brazil, India, Russia Together
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    Imagine what $5.2 by the newly wealthy Chinese will do to the price of gold, of consumer products, of property inside and outside China. These deposits are growing at a nominal rate of 14% annually– leaving a wide margin above the 5.5% current rate of inflation.

    As this pool of $5.2 trillion earns interest income that is below the 5.5% inflation rate, the Chinese must avidly look for investments that can make up that differential and increase their wealth.

    Take a look at the chart below which shows that gold has increased some 24% so far this year, while hogs are up 29% and cattle up 25%. That’s inflationary for food. And as there are limited outlets inside China for that $5.2 trillion, I think you can make a vigorous argument for gold and silver to continue climbing– fueled by the most extraordinarily fast increase in purchasing power in world history. Think about it.

    BMO Capital Markets, Kenrick Jordan; (Click to Enlarge)

    http://www.forbes.com/sites/robertlenzner/2011/11/10/chinese-have-5-2-trillion-bank-deposits-more-than-gdps-of-brazil-india-russia-together/
 
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