The Eldorado takeover of Sinos gold assets and business still does not reveal the real risks involved .Any investment in Sino is also a sovereign risk. China is stockpiling gold .It is now encouraging openly its millions of investors to buy the yellow stuff as a form of savings meaning a huge lift in local demand for local miners with the liberalization of the internal gold market.On the downside for foreign investors is the risk that all gold mining will be nationalized given that the Chinese government is finessing breaking certain derivative contracts on oil entered into by its corporate denizons. There is the risk that a reneging of large gold future contracts may also find the Chinese short big time on gold . The closest place to get it is in their own mines.
SGX Price at posting:
$7.11 Sentiment: Sell Disclosure: Not Held
