The gold price
Gold Investment 'key' to China's rise - 14 May 2009
A leading market research intelligence firm has claimed today (May 14th) that China's love affair with Gold Investment has played a major part in its rise to the top of the production charts.
China usurped South Africa as the world's largest gold producer after seeing its yields rise to 270,491 tonnes in 2007, followed by a rise of 4.26 percent to 282,007 tonnes last year.
Now Mark King from CompaniesAndMarkets.com has explained that relative instability of the Chinese economy since the start of the financial crisis has led its people to Buy Gold in large quantities.
"Under the circumstances of unprecedented international financial crisis, economic depression and the worries about the inflation in the future, the investors recognized the advantages of possessing gold, reproving the core investment feature of the gold support value," he said.
Mr. King's comments come after Claus Vogt, editor of popular investment letter Sicheres Geld, suggested last week that gold prices have the potential to increase substantially in the coming months.
"I do think gold provides great insurance against political follies, especially those that will likely lead to inflation," he wrote on Fxstreet.com.
"In 2001, I interpreted these [US fiscal] policies as a major signal for a gold bull market. So with today no different - but actually worse - I'm sticking to my belief that gold will continue to shine."
Want to Buy Gold but unsure how to do it? For dealing spreads of $3 per ounce – plus secure, professional storage in Zurich, Switzerland for just 0.12% per year – click through to BullionVault now...
China usurped South Africa as the world's largest gold producer after seeing its yields rise to 270,491 tonnes in 2007, followed by a rise of 4.26 percent to 282,007 tonnes last year.
Now Mark King from CompaniesAndMarkets.com has explained that relative instability of the Chinese economy since the start of the financial crisis has led its people to Buy Gold in large quantities.
"Under the circumstances of unprecedented international financial crisis, economic depression and the worries about the inflation in the future, the investors recognized the advantages of possessing gold, reproving the core investment feature of the gold support value," he said.
Mr. King's comments come after Claus Vogt, editor of popular investment letter Sicheres Geld, suggested last week that gold prices have the potential to increase substantially in the coming months.
"I do think gold provides great insurance against political follies, especially those that will likely lead to inflation," he wrote on Fxstreet.com.
"In 2001, I interpreted these [US fiscal] policies as a major signal for a gold bull market. So with today no different - but actually worse - I'm sticking to my belief that gold will continue to shine."
Want to Buy Gold but unsure how to do it? For dealing spreads of $3 per ounce – plus secure, professional storage in Zurich, Switzerland for just 0.12% per year – click through to BullionVault now...
Goldbug, 14 May '09
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