Tuesday, November 12, 2013

Chinese people encouraged to buy Gold

We all admire the economic growth in China over the last decade. China has the potential to overtake the US one day in the future to be the number one economic power. So what does it tell you when they are encouraging their citizens to invest in gold ? Surely they are not trying to trick them. Here below Dr Marc Faber talks about this.

"Basically, the Chinese are encouraging Chinese people to own gold and the government has probably been a heavy buyer of gold because China is probably the world’s largest producer. So they buy the gold maybe directly from their own mines and it’s obviously a source of demand. That’s why it’s interesting that the price of gold fell so sharply from 1.921 Dollars in September 2011 to below 1.200 when actually the physical demand was relatively high."