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 Replies: 16 / Views: 3,292 |
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Valued Member
United States
384 Posts |
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Bedrock of the Community
Australia
21786 Posts |
The Perth Mint have always made a tidy profit from Chinese buyers, and have catered for this market, with their Chinese Calendar bullion coins, in the face of marketing of Chinese bullion Pandas. |
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Pillar of the Community
Canada
3692 Posts |
Their cultures have glints of gold everywhere. I really think this is just their regular demand coupled with an increase in population. I don't think they're too worried about the price.
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Pillar of the Community
United States
1450 Posts |
Interesting that it is Chinese citizens,not the Chinese government. Sounds like they trust their governments control of monetary policy as much as we trust ours.
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Valued Member
 United States
384 Posts |
I think in china it is more about people getting richer, and being able to afford more of everything, not just distrust of government.
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Pillar of the Community
United States
1450 Posts |
I was referring primarily to their inflation issues of late. Seems like the surge in buying has correlated with that. No doubt the emerging middle class has a lot to do with more people able to be involved in the buying.
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Valued Member
Poland
114 Posts |
They simply become richer and richer. And there are MANY of them.
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Pillar of the Community
United States
4008 Posts |
Quote:
Interesting that it is Chinese citizens,not the Chinese government. Sounds like they trust their governments control of monetary policy as much as we trust ours. There could be some of that. Asians in general have seen a fair amount of political upheaval, so often prefer to hold their wealth in things that will always be of value and not in currencies that come and go. As to the Chinese government... do we really know that the Bank of China is not laying in multi-ton quantities of precious metals? If they were doing that, I would think that they would be fairly quiet about it; acting through various intermediaries, etc. Governments often buy, sell, and trade PMs. In most cases, this does not result in shipping PMs from the seller to the buyer. Instead, it is just a change of ownership entry in their bookkeeping. |
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Valued Member
United States
384 Posts |
So I wonder what happens when PM prices get high enough, where even the Chinese people want to start selling their holdings. And then they realize that nobody is buying from them because of all the cheap money they have made over the years selling fakes/counterfits. That'll be interesting..
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Valued Member
United States
284 Posts |
China may be buying more gold but one day they may decide to sell it. Yikes! What would happen to the gold market then?
-- Boris
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Valued Member
United States
487 Posts |
I read just recently that the Chinese government relaxed restrictions on their peoples ability to purchase and hold precious metals. With a billion Chinese and a large population of Indians procuring precious metals, the price will definitely go but one way. That way is up!
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Pillar of the Community
United States
4008 Posts |
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China may be buying more gold but one day they may decide to sell it. Yikes! What would happen to the gold market then? - Boris My guess is not much. They aren't buying it all at once and probably won't sell it all at once. Their sales could add a slight amount of downward price pressure but the last thing they would want to do would be to sell fast enough to drop the price of their unsold holdings. The Chinese are often referred to as "the Jews of the Orient". This is not a sign of disrespect but a recognition of the fact that they KNOW business. In spite of the current commie government in China, many Chinese there and around the world own and operate successful small businesses. I have to think that the people running the government of China have this same business sense. |
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Rest in Peace
United States
9104 Posts |
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Interesting that it is Chinese citizens,not the Chinese government. Sounds like they trust their governments control of monetary policy as much as we trust ours In fact, their gubmint recently began encouraging its citizens to buy gold. |
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Moderator
 United States
16679 Posts |
Seems like the Chinese get it. Who wants worthless paper?
swcoin.ecrater.com
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Pillar of the Community
United States
4008 Posts |
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Who wants worthless paper? Paper has value as long as everyone THINKS that it has value. As we progress into the 21st century, fewer people are thinking that way. Governments can only play the shrinking currency game so long before just about everyone is on to them. Those who collect PMs have been on to them for a while, so not everyone is being fooled by fiat currency gymnastics. |
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Valued Member
Poland
114 Posts |
Ironically paper money was invented by the Chinese!
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Replies: 16 / Views: 3,292 |
Posted 05/20/2011 09:56 am
