China is buying gold like there's no tomorrow

This form of "wealth management" could be the world's future
China is buying gold like there's no tomorrow

On Monday, gold remained above Rs 72,000 per 10 grams, having reached a record high of 73,958 rupees per 10 grams in April. According to experts, domestic spending in China has risen due to shaky faith in real estate and the stock market following a series of scandals. The People's Bank of China (PBC) is likewise increasing its reserves and selling US debt. Physical gold demand in India remained weak this week, despite a minor price adjustment as buyers waited for an even bigger drop, while Chinese premiums fell for the second week in a row due to sluggish holiday demand.

Domestic gold prices in India, the world's second-largest consumer and main importer, dipped to roughly 70,500 rupees per 10 kilos this week, down from a record high of 73,958 rupees last month. China's investment market is massive. Chinese money goes quickly around the world in real estate, stock markets, and other investments. Chinese buyers positioned themselves in the same way you would while turning on your phone. China's vast and hyperresponsive market has been buying gold for some time. Gold is well-known over the world as a hedge against both harsh times and inflation. It's easy to purchase. More importantly, and equally traditional, you can purchase gold anywhere in the world.You can have a nest egg outside of your jurisdiction. Furthermore, it is portable. Wherever you acquire gold, capital is waiting for you.

Investment grade gold that is 99.9% pure, not bits and pieces that are frequently "diluted" with other metals. This gold is normally sold in one-ounce bars. Some of this gold has been on the market in various forms for millennia. A lot of it is recycled into newer ingots.

When the mice got into the grain, there were a lot more mice doing themselves favors. One example is the highly problematic "empty cities" development binge. Some people made money, which China is now paying for. Great Chinese tradition: avoid poverty by all means possible. Thus the gold rush. Chinese investors can buy comparatively cheap "gold beans" at a low cost. Gold beans are essentially mass-produced for the Chinese home market.

This has all transpired in a few years. Perhaps China, unlike the West, does not understand the concept of sending future generations broke before they are born. You ensure that everything important is costly and will become much more expensive in the future. China has a lot to learn from the West about utter lunacy.This very literal bean counting is a variant on the old scrimping and saving methods. It's rare to see a gold-buying option established in such a large market.