Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | UraniumSeek.com 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

SWOT Analysis: Gold Bounced Back After Attempts to Knock Down Price
By: Frank Holmes

Hyperinflation in Zimbabwe Ė Itís back, but maybe not for long
By: JP Koning

Gold Versus Bitcoin: The Pro-Gold Argument Takes Shape
By: John Rubino

Inflation and Counterfeit Credit
By: Keith Weiner

Gold's Interesting Day
By: Rick Ackerman

Two Scenarios, One Strategy
By: Gary Savage

Zinc One Files a Technical Report on Scotia Property
By: Zinc One Resources Inc.

Money and Markets Infographic Shows Silver Most Undervalued Asset
By: GoldCore

Asian Metals Market Update: November-20-2017
By: Chintan Karnani, Insignia Consultants

GoldSeek.com Radio: John Williams and Louis Navellier, and your host Chris Waltzek
By: radio.GoldSeek.com

 
Search

GoldSeek Web

 
Chinese equity bubble to pop boosting gold prices as China officially confirms its huge gold reserves?


 -- Published: Sunday, 26 April 2015 | Print  | Disqus 

By Peter Cooper

The Chinese equity bubble continued to inflate last week with 3.5 million new brokerage accounts. How long can the market sustain that sort of momentum? Another week? A month? Thatís the problem with exponential market movements. They always run out of new buyers very quickly and then what has gone up will go back down again.

What will the Chinese retail buyers do then? Not everybody will lose their shirt. There will be those who take the chance to sell out at a profit while the madness of crowds continues. They wonít want to buy shares having just watched the market blow up, or houses for that matter as Chinese real estate developers have only just started to go bankrupt.

Gold rush?

No the only other asset class available to them is precious metals and the Chinese are already the second largest buyers of gold after India. Indeed all the official data about the movement of bullion over the past few years points to a massive transfer of gold and to a lesser extent silver in the direction of China.

One event eagerly awaited by goldbugs is an announcement by the Chinese government that its official gold reserves are now revised up to 3-4,000 tons. That could happen as soon as next month at an International Monetary Fund meeting to discuss the composition of the Special Drawing Rights or later in September.

On the other hand, the Chinese are in no rush to make their position clear as keeping quiet about this process has allowed it to happen at much lower bullion prices than otherwise. Still only last week a central bank official noted that China could not keep more than two per cent of its official reserves in gold because the market was too small.

Hoarding gold

That is true when gold is only worth around $1,200 an ounce. If this currency is revalued to its proper market level then it could be a lot more useful, and that presumably is why China has been buying so much of it.

China knows from its long history what happens when countries print too much currency. It invented paper and has witnessed many disastrous episodes of money printing in its own past. Buying up bullion on the cheap is a way to secure a key position in the coming currency reset when this system goes up in smoke.

So which will come first: the bursting of the Chinese equity bubble or news about Chinaís massive gold reserves? Probably the former but both will inevitably happen and that makes gold a very good buy right now.

http://www.arabianmoney.net/


| Digg This Article
 -- Published: Sunday, 26 April 2015 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2017



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer

The views contained here may not represent the views of GoldSeek.com, its affiliates or advertisers. GoldSeek.com makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, is strictly prohibited. In no event shall GoldSeek.com or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.