Tai Pei news reports;
China may extend it’s docks to more gobal suppliers of gold, as their domestic production is not enough to satisfy local demand. Though Chinese production of gold is the largest in the world, their demand for the precious metal has grown beyond what they are capable of producing.
In the recent past, China has limited the importing and exporting of gold to certain banks, and very few foriegn companies. They’re decision to expand the asian contry’s options is a sign of growing demand for the yellow metal, or a glimpse in to Chinas thoghts about the global economic situation, and what they are doing to protect themselves. Afterall, they do hold a good portion of the US debt load.
Bayram Dincer, an analyst at LGT Capital Management in Pfaeffikon, Switzerland has been quoted as saying
“It is a structural demand shift which must result in higher gold prices as the global equation has changed now significantly with more gold consumers and investors”
If Chinese banks are allowed to hedge onshore gold positions overseas to encourage the development of yuan-denominated derivatives trading, as some have mentioned, you might want to reconsider sitting heavy in the $US, and converting your currency to money in the form of gold.
Read the entire article here;