China Pushing Masses to Buy Gold & Silver

[Glorify Him]

This is very very interesting imho. Perhaps the Chinese got is trying to protect some of the personal wealth in its country against the inevitable bust of the US$, or the advent of a one world currency as was discussed on another recent thread:
LONDON -
We are indebted again to Paul Mylchreest's Thunder Road Report for news that will bring big smiles to gold and silver investors everywhere. Apparently China is pushing the idea of buying gold and silver for investment purposes to the general population in the way that Western television sells soap powder. If 1.3 billion Chinese citizens start buying gold and silver, even in tiny quantities, imagine what that will do to the market!
The report notes that China's Central Television, the main state-owned television company, has run a news programme letting the public know how easy it is to buy precious metals as an investment. On silver investment the announcer is quoted as saying " China has introduced its first ever investment opportunity for silver bullion. The bars are available in 500g, 1kg, 2kg and 5kg with a purity of 99.9%. Figures show that gold was fifty times more expensive than silver in 2007, but now that figure has reached over seventy times. Analysts say that silver has been undervalued in recent years. They add that the metal is the right investment for individual investors and could be a good way to cash in."
What appears to have happened in China is a total relaxation of strictures on holding precious metals by the individual with the government pushing gold and silver as an investment option, seemingly at every opportunity. This is a far cry from the situation only a few years ago where the distribution of gold and silver was strictly controlled. Now, the Thunder Road Report notes that every bank will sell gold and silver bullion bars in four different sizes to individuals and gold related investments are said to be soaring in popularity
http://www.mineweb.co.za/mineweb/vie...8452&sn=Detail

[Andy]

Re: China Pushing Masses to Buy Gold & Silver

The article does cause one to take second glance at the failing US dollar but...from what I understand of China the vast majority of that 1.3 billion are horrifically poor...barely able to survive day-day. I somehow doubt many of that number have any money to purchase something as expensive as precious metals.

[Issachar]

Re: China Pushing Masses to Buy Gold & Silver

This is very interesting. Right now the U.S.; indeed, much of the world, is in a deflationary period. A weird one, to be sure ... but deflationary nonetheless. I believe it will end with a huge push to inflated prices. Because of many new precedents, the inflated prices may be without precedent. THAT is when it will be a good idea for those that have the wherewithal to be invested in gold and silver. Governments; in particular central banks, don't like metals because they cannot simply create more or less of it as they can fiat currency. It takes away some control from them and they'd rather have all control. Too bad for them though.

Andy, China may not be all that bad off. While there are certainly large amounts of poverty there, on a percentage basis, I found this:

http://indexmundi.com/g/g.aspx?c=ch&v=69

Issachar, wondering if China know how close price inflation may be?

[Glorify Him]

Re: China Pushing Masses to Buy Gold & Silver

Issachar, I think that if China dumps all of its US treasury notes, we will find out mega fast! I also agree about there being a segment of Chinese who have money to spend. I occasionally sell from my shop and ship to China. And not cheap cheap stuff either. Also, look at the price of gold--it is close to $1k again.